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April 10, 2025Cakrawala PedagogikOpen Access

THE IMPACT OF TAX INCENTIVES, INFLATION AND GDP ON FOREIGN DIRECT INVESTMENT IN INDONESIA: A POST – IMPLEMENTATION ANALYSIS OF THE JOB CREATION LAW IMPLEMENTATION No. 11/2020

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Authors

PAPutry Sally Angellyta

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Overview

Quantitative analysis reveals tax incentives, inflation, and GDP do not significantly affect FDI in Indonesia post Job Creation Law implementation.

Key Points

  • Foreign direct investment increased after regulatory reforms, but tax incentives had little effect on its growth.
  • Analysis revealed a weak positive linkage between inflation and foreign direct investment, but remains statistically insignificant.
  • Multiple linear regression analysis using data from 2019 to 2023 assessed the variables' relationships with foreign direct investment.
  • The findings highlight the importance of legal certainty and infrastructure over fiscal factors in attracting foreign capital.

Cite This Study

Putry Sally Angellyta (2025) studied this question.

synapsesocial.com/papers/68af6bf77567bf4f94fe93echttps://doi.org/10.51499/cp.v9i1.752
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