Analysis of Factors Affecting the Entry of Foreign Direct Investment into Indonesia (Case Study of Three Industrial Sectors in Indonesia)

arXiv - ECON - Econometrics Pub Date : 2024-08-04 DOI:arxiv-2408.01985

Tracy Patricia Nindry Abigail Rolnmuch, Yuhana Astuti

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Abstract

The realization of FDI and DDI from January to December 2022 reached Rp1,207.2 trillion. The largest FDI investment realization by sector was led by the Basic Metal, Metal Goods, Non-Machinery, and Equipment Industry sector, followed by the Mining sector and the Electricity, Gas, and Water sector. The uneven amount of FDI investment realization in each industry and the impact of the COVID-19 pandemic in Indonesia are the main issues addressed in this study. This study aims to identify the factors that influence the entry of FDI into industries in Indonesia and measure the extent of these factors' influence on the entry of FDI. In this study, classical assumption tests and hypothesis tests are conducted to investigate whether the research model is robust enough to provide strategic options nationally. Moreover, this study uses the ordinary least squares (OLS) method. The results show that the electricity factor does not influence FDI inflows in the three industries. The Human Development Index (HDI) factor has a significant negative effect on FDI in the Mining Industry and a significant positive effect on FDI in the Basic Metal, Metal Goods, Non-Machinery, and Equipment Industries. However, HDI does not influence FDI in the Electricity, Gas, and Water Industries in Indonesia.

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影响外国直接投资进入印度尼西亚的因素分析（印度尼西亚三个工业部门的案例研究）

2022 年 1 月至 12 月期间，外国直接投资和直接外资实现额达 12072 亿印尼盾。外国直接投资实现额最大的行业是基础金属、金属制品、非机械和设备行业，其次是采矿业和电力、天然气和水行业。本研究旨在确定影响外国直接投资进入印尼各行业的因素，并衡量这些因素对外国直接投资进入的影响程度。本研究进行了经典假设检验和假设检验，以调查研究模型是否足够稳健，从而在全国范围内提供战略选择。此外，本研究还使用了普通最小二乘法（OLS）。结果表明，电力因素并不影响三个行业的外国直接投资流入量。人类发展指数（HDI）因素对采矿业的外国直接投资有显著的负向影响，对基础金属、金属制品、非机械和设备行业的外国直接投资有显著的正向影响。然而，人类发展指数并不影响印度尼西亚电力、天然气和水行业的外国直接投资。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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arXiv - ECON - Econometrics

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