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September 5, 2025Journal of Economic Resilience and Sustainable Development

The effect of foreign direct investment on economic growth in Indonesia: A case study using secondary data for 1995-2023

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Authors

HEHeni EngelicaAWAnnisa Retno WulansariFMFaridlotun Muthoharoh

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Overview

Quantitative analysis shows foreign direct investment positively affects economic growth in Indonesia, suggesting areas for policy focus.

Key Points

  • Foreign direct investment significantly enhances Indonesia's economic growth, boosting production capacity and efficiency.
  • The study highlights how stable exchange rates and controlled inflation contribute to economic development.
  • Quantitative analysis using multiple linear regression was applied to assess the impact of various economic indicators on growth.
  • Managing exchange rate fluctuations is crucial for maintaining economic stability and encouraging investment.

Cite This Study

Engelica et al. (2025) studied this question.

synapsesocial.com/papers/68c23965b210217d6477b5cahttps://doi.org/10.61511/ersud.v2i1.2025.1400
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Also Consider

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  1. 1Foreign Direct Investment and Economic Growth in Indonesia: Role of Human Capital and Trade Openness2024 · 1 citations
  2. 2The Effect of Foreign Direct Investment, Labor, Manufacturing Industry and Government Expenditure on Economic Growth in Indonesia2025 · 1 citations
  3. 3THE IMPACT OF TAX INCENTIVES, INFLATION AND GDP ON FOREIGN DIRECT INVESTMENT IN INDONESIA: A POST – IMPLEMENTATION ANALYSIS OF THE JOB CREATION LAW IMPLEMENTATION No. 11/20202025
  4. 4IMPACT OF RENEWABLE ENERGY, FDI, AND INFLATION ON INDONESIA’S ECONOMIC GROWTH2025
  5. 5Analysis of Factors Influencing Foreign Direct Investment in Indonesia Using the Dunning Model2025