Research Article
Analysis of Foreign Direct Investment For Economic Growth In Indonesia
@INPROCEEDINGS{10.4108/eai.4-9-2024.2353715, author={Rama Sugiyanto and Nadia Sabila Al'Haq and Titis Aditya Handayani and Aman Kraidam}, title={Analysis of Foreign Direct Investment For Economic Growth In Indonesia}, proceedings={Proceedings of the 7th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2024, 4-5 September 2024, Shah Alam, Selangor, Malaysia}, publisher={EAI}, proceedings_a={ICEBE}, year={2024}, month={12}, keywords={foreign direct investment inflation economic growth}, doi={10.4108/eai.4-9-2024.2353715} }- Rama Sugiyanto
Nadia Sabila Al'Haq
Titis Aditya Handayani
Aman Kraidam
Year: 2024
Analysis of Foreign Direct Investment For Economic Growth In Indonesia
ICEBE
EAI
DOI: 10.4108/eai.4-9-2024.2353715
Abstract
This study analyzes the impact of Foreign Direct Investment (FDI) on economic growth in Indonesia. As a developing country with an upper middle-income level and a population growth rate of 1.3% per year in 2023, Indonesia attracts both local and foreign investors. The Indonesian government actively promotes policies to attract investors, contributing to the country's economic development. This research explores the significant role of FDI in various industries, including telecommunications, oil and gas, and information technology, and how it transforms economic structures, boosts export values, and introduces new production methods. The study utilizes quantitative methods with data from 1993 to 2022, employing Eviews for analysis. The findings reveal that FDI positively impacts Indonesia's economic growth, supported by improved infrastructure and technological advancements. However, inflation remains a critical factor influencing investment decisions, necessitating stable price conditions for sustainable growth.
