The Impact of Foreign Direct Investment on Economic Growth in Indonesia

Indonesia is one of the developing countries that focuses on national economic development and economic growth. High economic growth can be an indicator that the country is successfully steering the wheel of development, which can ultimately be fully harnessed to improve the welfare of its people. Economic growth is one of the most important things in Indonesia, so it is important to understand the factors that affect Indonesia's economic growth. This study uses panel data from the Central Bureau of Statistics of the Republic of Indonesia and the Ministry of Development and National Planning of the Republic of Indonesia for regression analysis from 2017 to 2021. The research results show that: (1) Foreign direct investment has a positive impact on Indonesia's economic growth, but it is not significant during the sample period; (2) Indonesia's imports and exports will increase significantly from 2017 to 2021; (3) Imports will have a positive and significant impact on Indonesia's economic growth; (4) Exports will have a positive and significant impact on Indonesia's economic growth; (5) Labor force positive and significant impact on Indonesian economic growth. Finally, based on the above conclusions, the corresponding countermeasures and suggestions are put forward from two aspects of the government and enterprises.