The Role of Foreign Investment and Domestic Investment in Indonesia's Gross Domestic Product (GDP)
Article Sidebar
Main Article Content
Abstract
This research is important to provide a clear picture of Indonesia's economic dynamics and to support better decision-making in economic policy. Increased domestic investment is not enough to drive overall economic growth, and foreign investment is also not in line with the increase in domestic investment due to a mismatch between domestic investment and expected economic growth outcomes. The purpose of this study is to analyze the role of foreign investment and domestic investment on Indonesia's Gross Domestic Product (GDP). This study uses time series data from 2014-2023. The results of this study indicate that Foreign Direct Investment (FDI) does not have a significant positive effect on Indonesia's Gross Domestic Product (GDP). Although it shows a positive direction, the effect is not significant, so increasing foreign investment is still needed to drive the growth of Indonesia's Gross Domestic Product (GDP). Domestic Direct Investment (DDI) has a significant positive effect on Indonesia's Gross Domestic Product (GDP). This indicates that PMDN significantly contributes to GDP growth in Indonesia, with a stronger role than foreign investment. Simultaneously, foreign investment and domestic investment had a positive and significant impact on Indonesia's Gross Domestic Product (GDP) from 2014 to 2023. This indicates that although domestic investment had a partial negative impact, both simultaneously still made a positive contribution to economic growth.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Agustina, R. A., Andiny, P., Rizal, Y., & Safuridar, S. (2024). Pengaruh Penerimaan Pajak, Penanaman Modal Asing Dan Penananaman Dalam Negeri Terhadap Pertumbuhan Ekonomi Di Indonesia. Jurnal Ekonomi Dan Pembangunan Indonesia, 3(1), 49–60. https://doi.org/10.61132/jepi.v3i1.1065
Domar, E. (1946). Rate of Growth, and Employment. Journal of the Econometric Society, 14(2), 137–147.
Dunning, J. H. (1988). The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies, 19(1), 1–31. https://econpapers.repec.org/RePEc:pal:jintbs:v:19:y:1988:i:1:p:1-31
Hapsari, R. D., & Prakoso, I. (2016). Penanaman Modal Dan Pertumbuhan Ekonomi Tingkat Provinsi Di Indonesia. Jurnal Ekonomi Dan Bisnis, 19(2), 211. https://doi.org/10.24914/jeb.v19i2.554
IMF. (2023). IMF Staff Completes 2023 Article IV Mission to Indonesia. Press Release. https://www.imf.org/en/News/Articles/2023/03/21/pr2387-indonesia-imf-staff-completes-2023-article-iv-mission-to-indonesia?utm_source=chatgpt.com
Jamil, P. C., & Hayati, R. (2020). Penanaman Modal Asing di Indonesia. Jurnal Ekonomi KIAT, 31(2), 1–4. https://journal.uir.ac.id/index.php/kiat
Jufrida, F., Syechalad, M. N., & Nasir, M. (2017). Analisis Pengaruh Investasi Asing Langsung (FDI) Dan Investasi Dalam Negeri Terhadap Pertumbuhan Ekonomi Indonesia. Jurnal Perspektif Ekonomi Darussalam, 2(1), 54–68. https://doi.org/10.24815/jped.v2i1.6652
Kambono, H., & Marpaung, E. (2020). Pengaruh Investasi Asing dan Investasi Dalam Negeri Terhadap Perekonomian Indonesia. Jurnal Akuntansi Maranatha, 12, 137–145. https://doi.org/10.28932/jam.v12i1.2282
Kurniawan, & Puspitaningtyas, Z. (2016). Penelitian Kuantitatif, Metode Penelitian Kuantitatif. In Google Books (Issue April 2016).
Nuritasi, F. (2013). Pengaruh Infrastruktur, PMDN Dan PMA Terhadap Produk Domestik Bruto Di Indonesia. Economics Development Analysis Journal, 2(4), 456–467. https://scholar.google.com/scholar?hl=id&as_sdt=0%2C5&q=PENGARUH+INFRASTRUKTUR%2C+PMDN+DAN+PMA+TERHADAP+PRODUK+DOMESTIK+BRUTO+DI+INDONESIA+Firdausi&btnG=
Organization for Economic Co-operation and Development. (2020). Foreign direct investment flows in the time of COVID-19. Oecd.Org, May 2020, 1–13. https://www.oecd.org/coronavirus/policy-responses/foreign-direct-investment-flows-in-the-time-of-covid-19-a2fa20c4/
Polii, C. D., Kaawoan, J. E., & Rahman, I. (2021). Strategi Dinas Penanaman Modal Dan Pelayanan Terpadu Satu Pintu Dalam Mempromosikan Potensi Investasi di Kabupaten Minahasa Selatan. Jurnal Governance, 1(1), 1–9. https://ejournal.unsrat.ac.id/index.php/governance/article/view/36255
Putri, E. C. (2017). Pengaruh Net Ekspor Dan Investasi Terhadap Pertumbuhan Ekonomi Di Negara ASEAN-6. Universitas Tanjungpura, Indonesia, 1–33.
Riyad, M. (2012). Faktor-Faktor Yang Mempengaruhi Pertumbuhan Ekonomi Di Enam Negara Asean Faktor-Faktor Yang Mempengaruhi Pertumbuhan Ekonomi Di Enam Negara Asean. http://lib.ui.ac.id/file?file=digital/20285107-T29481-Faktor-faktor.pdf
Romer, P. M. (1990). The problem of development: Aconference of the institute for the study of free enterprise systems. The Journal of Political Economy, 98(5), 71–102. https://web.stanford.edu/~klenow/Romer_1990.pdf
Sucipto, H., & Puspitasari, M. (2016). Pengaruh Penanaman Modal Asing, Utang Luar Negeri Pemerintah, Dan Keterbukaan Perdagangan Terhadap Produk Domestik Bruto. Jurnal Ekonomi-Qu, 6(1), 36–53. https://doi.org/10.35448/jequ.v6i1.4161
Tamba, A. V., Purba, M. L., & Sihotang, J. (2023). Analisis Pengaruh Pengeluaran Pemerintah, Penanaman Modal Dalam Negeri, Dan Penanaman Modal Asing Terhadap Produk Domestik Bruto Di Indonesia Periode 2000–2020. Jurnal KAFEBIS, 1(1), 1–10. https://doi.org/10.51622/kafebis.v1i1.2008
UNCTAD. (2022). The Impact on Trade and Development of the war in Ukraina. (United Nations Publication, March, 1–113.