THE IMPACT OF INVESTMENT ON ECONOMIC GROWTH IN REMOTE AREAS OF NORTH MALUKU

This study aims to analyze the impact of capital investment on economic growth in remote areas of North Maluku, taking into account their distinct geographic and socio-economic characteristics. A descriptive-qualitative approach supported by macro-structural secondary data analysis and critical literature review was employed to evaluate the contribution of capital inflows to the regional growth structure. This method provides a comprehensive understanding of the dynamics through which investment influences per capita income and local economic development. The findings demonstrate that massive capital expansion in the nickel mining downstream sector significantly accelerates Gross Regional Domestic Product (GRDP) growth; however, its transmission toward local labor absorption and the reduction of income disparities remains constrained by structural bottlenecks. These results underscore the urgency of tailoring pro-investment policies to remote territories to achieve inclusive and sustainable economic development. This study recommends that regional governments optimize the local investment climate through regulatory simplification, competitive fiscal incentives, and institutional reinforcement of local supply chains connecting Micro, Small, and Medium Enterprises (MSMEs) with downstream smelting industrial hubs.