Dampak Ekonomi Makro terhadap Inward Forect Direct Investment (FDI) di Indonesia

Abstrak

This paper investigates the country-specific risks associated with inward
foreign direct investment (FDI) in Indonesia and analyzes the broader
macroeconomic consequences. The study utilizes the Autoregressive
Distributed Lag (ARDL) model to examine both the short-term and long-term
cointegration between macroeconomic factors and foreign investment
inflows. The research is based on secondary annual time series data from
1984 to 2015. In the short term, the exchange rate has a crucial impact, as
depreciation of the Indonesian Rupiah leads to a higher inflow of FDI.
However, while financial variables do not significantly affect the dependent
variable in the long term, independent variables such as inflation, GDP
growth risk, and economic and political risks do have a considerable effect.
Rational foreign investors prioritize maximizing returns on their investments
by closely monitoring the volatility of macroeconomic conditions. Thus, it is
imperative for the government to regulate these aspects to enhance the inflow
of foreign investments.