PERAN PERTUMBUHAN EKONOMI, INFLASI, NILAI KURS, DAN TENAGA KERJA TERHADAP FOREIGN DIRECT INVESTMENT DI INDONESIA

This study aims to analyze the influence of economic growth, inflation, exchange rate, and labor force on the inflow of Foreign Direct Investment (FDI) in Indonesia. FDI plays a vital role in promoting economic development in emerging countries like Indonesia through capital inflow, technology transfer, job creation, and productivity improvement. This research utilizes annual time series secondary data from 1994 to 2023 obtained from the World Bank, and applies the Vector Error Correction Model (VECM) for analysis. The findings reveal that in the long run, economic growth, inflation, exchange rate, and labor force significantly affect FDI. Economic growth and labor force have a positive influence, while inflation and exchange rate have a negative impact. However, in the short run, none of the four variables show significant effects on FDI. These results highlight the importance of maintaining macroeconomic stability and improving labor quality to enhance Indonesia's attractiveness for foreign investors.