PENGARUH PEMBENTUKAN MODAL TETAP BRUTO, TPT, DAN INFLASI TERHADAP PERTUMBUHAN EKONOMI DI PULAU JAWA PERIODE 2014-2023

Java Island as the economic center of Indonesia with a contribution of 57.05% to the national GDP faces significant economic growth inequality, especially in the period 2014-2023 which includes the COVID-19 pandemic phase and economic recovery. This study aims to analyze the effect of Gross Fixed Capital Formation, Open unemployment rate, and inflation on economic growth in six provinces of Java island. The method used is panel data regression with Fixed Effect Model and using secondary data for the period 2014-2023 from the Central Statistics Agency and the Financial Services Authority. The results showed that Gross Fixed Capital Formation had a significant positive effect, The Open unemployment rate had a significant negative effect, and inflation had a significant positive effect on economic growth with a determinant coefficient of 74.91%. The study concluded that optimizing infrastructure investment, reducing unemployment, and controlling inflation in the range of 2-4% is a key strategy to promote inclusive and sustainable economic growth in Java Island.