Literature Review on the Role of Public Investment in Promoting Sustainable Economic Growth in Indonesia

Abstract

Public investment plays a strategic role in driving sustainable economic growth in Indonesia. Through infrastructure development, job creation, and the reduction of social and economic disparities, public investment can enhance the welfare of society. This study analyzes the role of public investment using a literature-based approach regarding its impact on economic growth. The research findings indicate that the integration of sustainability principles in public investment, such as environmental, social, and governance (ESG), can enhance economic efficiency and maintain environmental sustainability. The main challenges in optimizing public investment include inter-agency coordination, transparency, and effective budget management. Case studies from other countries show that targeted public investment can accelerate inclusive economic development. Therefore, policy improvements and strict oversight are necessary to ensure that public investment contributes maximally to sustainable economic development in Indonesia