Impact Of Foreign Direct Investment Of Indonesia Investment Authority On Economic Growth: Strengthening National Economic Recovery to Overcome Global Recession In 2023

Abstract

This research aimed to examine the impact of Foreign Direct Investment (FDI) of the Indonesia Investment Authority (INA) on the economic growth of Indonesia to reinforce the national economic recovery to face the global recession in 2023. This paper is crucial since Indonesia needs to overcome the challenge of a huge recession in the distressed condition due to the Covid-19 impact. Meanwhile, the previous studies were not purposed to solve a global recession. We employ quantitative methodology with various econometric methods, such as Ordinary Least Squares (OLS) and robustness tests. The data that we use is secondary data from 1981 until 2020 on a yearly basis. The result of this paper is that the FDI of INA has a positive effect on Indonesia´s economic growth and it is statistically significant. Furthermore, the model is robust, so it is consistently accurate from unforeseen causes and avoided potential bias in the results. It implies that Indonesia may employ FDI from INA to boost the economy and conquer the nearing massive recession.