The Role of Domestic Investment: A Case Study in Surakarta Karesidenan, Indonesia
Abstract views: 0
,
PDF downloads: 0
Abstract
The research aims to identify the factors that influence Domestic Investment (PMDN) in the Surakarta Karesidenan region. The research considers several aspects of variables as influencing factors, namely Road Length, Water Distribution, Labor, and Gross Regional Domestic Product. The data collection method is in the form of secondary data sources from the Central Bureau of Statistics, DPMPTSP Central Java. Observation of panel data time dimension research data in 2013-2018, covering the area used, including 7 (seven) districts/cities included in the Surakarta ex-Karesidenan, the number of observation data samples amounted to 42 samples. This study did not include the 2019-2024 period in the analysis because the global economic crisis due to the COVID-19 pandemic caused the PMDN economy to shift its priorities. In this case, companies will focus more on crisis management and divert already scarce financial resources to address the health and economic consequences of the COVID-19 pandemic, so companies will likely delay many of their investments and policies. The estimation method used is using panel data in individual effect (fixed effect) models. The results showed that partial analysis showed that road infrastructure does not affect domestic investment. Water infrastructure does not affect Domestic Investment. However, the research findings show that labor has a significant negative effect on domestic investment, and gross regional domestic product has a significant positive effect on domestic investment in the Surakarta Karesidenan region.
Downloads
References
A’yun, I. Q., & Khasanah, U. (2022). The Impact of Economic Growth and Trade Openness on Environmental Degradation: Evidence from A Panel of ASEAN Countries. Jurnal Ekonomi & Studi Pembangunan, 23(1), 81–92. https://doi.org/10.18196/jesp.v23i1.13881
Abebe, G., McMillan, M., & Serafinelli, M. (2022). Foreign direct investment and knowledge diffusion in poor locations. Journal of Development Economics, 158(July), 102926. https://doi.org/10.1016/j.jdeveco.2022.102926
Atikasari, N. A., Khoirudin, R., & Saleh, R. (2023). Analysis of the Influence of Gross Regional Domestic Product (GRDP), Minimum Wage, Population, Education, and Unemployment on Labor Force Absorption in Districts/Cities of Central Java Province, 2017-2021. MULTIPLE: Journal of Global and Multidisciplinary, 1(3), 263–270. https://journal.institercom-edu.org/index.php/multiple/article/view/82
Baltagi, B. H. (2021). Econometric Analysis of Panel Data (Springer Texts in Business and Economics) - Sixth Edition. In Springer.
Bom, P. R. D., & Erauskin, I. (2022). Productive government investment and the labor share. International Review of Economics and Finance, 82(June), 347–363. https://doi.org/10.1016/j.iref.2022.06.017
Brouwer, R., Sharmin, D. F., Elliott, S., Liu, J., & Khan, M. R. (2023). Costs and Benefits Of Improving Water And Sanitation In Slums And Non-Slum Neighborhoods in Dhaka, a fast-growing mega-city. Ecological Economics, 207 (June 2022), 107763. https://doi.org/10.1016/j.ecolecon.2023.107763
Danju, I., Maasoglu, Y., & Maasoglu, N. (2014). The East Asian Model of Economic Development and Developing Countries. Procedia - Social and Behavioral Sciences, 109, 1168–1173. https://doi.org/10.1016/j.sbspro.2013.12.606
Davy, L., & Saleh, R. (2024). Abusers of Land Value Zone Utilization : Study of Special Funds and D. I. Yogyakarta Tourist Visitors. 3(1), 44–59. https://doi.org/10.12928/jampe.v3i1.8969
Guritno, D. C., Kurniawan, M. L. A., Mangkunegara, I., & Samudro, B. R. (2021). Is there any relation between Hofstede’s cultural dimensions and corruption in developing countries? Journal of Financial Crime, 28(1), 204–213. https://doi.org/10.1108/JFC-06-2020-0115
Gusev, A. (2022). Analytical assessment of efficiency parameters of investment processes in the national economy of the region. Transportation Research Procedia, 63, 92–98. https://doi.org/10.1016/j.trpro.2022.05.011
Haenssgen, M. J., Savage, J., Yeboah, G., Charoenboon, N., & Srenh, S. (2021). In a network of lines that intersect: The socio-economic development impact of marine resource management and conservation in Southeast Asia. World Development, 146, 105576. https://doi.org/10.1016/j.worlddev.2021.105576
Hern, G., & Martinez-cobas, X. (2024). The impact of transportation investment , road transportation and telecommunications on FDI in Latin America 2008-2021. 2(February), 45–57. https://doi.org/10.1016/j.team.2024.01.002
Jeon, H., Cui, X., & Zhang, C. (2023). The effects of labor choice on investment and output dynamics. Journal of Corporate Finance, 83(January), 102497. https://doi.org/10.1016/j.jcorpfin.2023.102497
Joshi, N., Lopus, S., Hannah, C., Ernst, K. C., Kilungo, A. P., Opiyo, R., Ngayu, M., Davies, J., & Evans, T. (2022). COVID-19 lockdowns: Employment and business disruptions, water access and hygiene practices in Nairobi’s informal settlements. Social Science and Medicine, 308(July), 115191. https://doi.org/10.1016/j.socscimed.2022.115191
Khoirudin, R., & Khasanah, U. (2018). Valuasi Ekonomi Objek Wisata Pantai Parangtritis, Bantul Yogyakarta. Jurnal Ekonomi Dan Pembangunan Indonesia, 18(2), 152–166. https://doi.org/10.21002/jepi.2018.09
Khoirudin, R., Wahyuni, S., & Budi Nugraha, C. (2020). Distribution of Optimized Public Assets Utilization in Yogyakarta Province. (pp. 48–62). Jurnal Analisis Bisnis Ekonomi. https://doi.org/10.31603/bisnisekonomi.v19i1.3757
Kurniawan, M. L. A., & A’yun, I. Q. (2022). Dynamic Analysis On Export, FDI and Growth in Indonesia: An Autoregressive Distributed Lag (ARDL) Model. Journal of Economics, Business, & Accountancy Ventura, 24(3), 350–362. https://doi.org/10.14414/jebav.v24i3.2717
Kwablah, E. (2023). Foreign direct investment, gross domestic product and carbon dioxide emission in sub-Saharan Africa: A disaggregated analysis. Transnational Corporations Review, 15(4), 59–68. https://doi.org/10.1016/j.tncr.2023.01.001
Meng, L. (2022). Political economy and cycling infrastructure investment. Transportation Research Interdisciplinary Perspectives, 14(April), 100618. https://doi.org/10.1016/j.trip.2022.100618
Naim, A., Darmawan, I. M. D. H., & Wulandari, N. (2021). Herding Behavior: Mengeksplorasi Sisi Analisis Broker Summary. Media Riset Akuntansi, Auditing & Informasi, 21(2), 207–226. https://doi.org/10.25105/mraai.v21i2.9502
Nareswari, N., Tarczyńska-Łuniewska, M., & Hashfi, R. U. Al. (2023). Analysis of Environmental, Social, and Governance Performance in Indonesia: Role of ESG on Corporate Performance. Procedia Computer Science, 225, 1748–1756. https://doi.org/10.1016/j.procs.2023.10.164
Nasir, M. S., A.K., M. L., Andriyani, N., Wibowo, A. R., & Oktaviani, Y. (2022). Credit Guarantee the National Economic Recovery Program (PEN) for MSMEs: A Case Study of MSMEs for Bank Pembangunan Daerah DIY. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 17(2), 158–170. https://doi.org/10.24269/ekuilibrium.v17i2.2022.pp158-170
Neuman, W. L. (2014). Social Research Methods: Qualitative and Quantitative Approaches. In Teaching Sociology (Vol. 30, Issue 3). Person Education Limited. https://doi.org/10.2307/3211488
Nguyen, M. T., Vu, Q. H., Truong, V. H., & Nguyen, H. H. (2023). A comprehensive evaluation of private sector investment decisions for sustainable water supply systems using a fuzzy-analytic hierarchy process: A case study of Ha Nam province in Vietnam. Heliyon, 9(9), e19727. https://doi.org/10.1016/j.heliyon.2023.e19727
Ramos-Salgado, C., Muñuzuri, J., Aparicio-Ruiz, P., & Onieva, L. (2022). A Comprehensive Framework To Efficiently Plan Short And Long-Term Investments In Water Supply And Sewer Networks. Reliability Engineering and System Safety, 219. https://doi.org/10.1016/j.ress.2021.108248
Ryan, T. P. (2013). Sample Size Determination and Power. In Sample Size Determination and Power. https://doi.org/10.1002/9781118439241
Saleh, R. (2022). Kajian Determinan Nilai Properti Perumahan (studi pada lampung selatan: kecamatan natar dan tanjung bintang). Manajemen Aset Dan Penilaian, 2(2), 92–98. https://doi.org/10.56960/jmap.v2i2.43
Sekine, T. (2022). Looking from Gross Domestic Income: Alternative view of Japan’s economy. Japan and the World Economy, 64(May). https://doi.org/10.1016/j.japwor.2022.101159
Suripto, Firmansyah, & Sugiyanto, F. X. (2020). Poverty viewed from the perspective of domestic production in Yogyakarta: The Solow growth model approach. International Journal of Business and Globalisation, 24(2), 174–184. https://doi.org/10.1504/IJBG.2020.105166
Volner, Ľ., & Čamaj, J. (2024). Pricing Adjustments Investment Costs Infrastructure Projects in the Slovak Republic : A Risk Worthy of Attention. Transportation Research Procedia, 77(2023), 128–136. https://doi.org/10.1016/j.trpro.2024.01.017
Wibowo, A. R., & Khoirudin, R. (2019). Analysis of Determinants of Poor Population in Central Java 2008-2017. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 14(1), 1. https://doi.org/10.24269/ekuilibrium.v14i1.1482
Yu, L. B., Tran, T. M., & Lee, W. S. (2023). Bridging the gap: Assessing the effects of railway infrastructure investments in Northwest China. China Economic Review, 82(November), 102076. https://doi.org/10.1016/j.chieco.2023.102076
Yuniarti, D., Purwaningsih, Y., Soesilo, A., & Suryantoro, A. (2022). Food Diversification and Dynamic Food Security: Evidence from Poor Households. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 23(1), 43–55. https://doi.org/10.23917/jep.v23i1.16302
Yuniarti, D., & Sukarniati, L. (2021). Penuaan Petani dan Determinan Penambahan Tenaga Kerja di Sektor Pertanian. Agriekonomika, 10(1), 38–50. https://doi.org/10.21107/agriekonomika.v10i1.9789
Copyright (c) 2025 Muchsin, Rahmat Saleh
This work is licensed under a Creative Commons Attribution 4.0 International License.
