Do Do a Macroeconomics Affect on Foreign Direct Investment in Indonesian Firms?

Rollis Ayu Ditasari; Sendy Dwi Haryanto; Rihan Mustafa Zahri

Rollis Ayu Ditasari Departement of Vocational Tax Management, Faculty of Economics and Business, Universitas PGRI Madiun, Indonesia
Sendy Dwi Haryanto Universitas PGRI Madiun
Rihan Mustafa Zahri Departement of Vocational Tax Management, Faculty of Economics and Business, Universitas PGRI Madiun, Indonesia

Keywords: Foreign Direct Investment, Inflation, BI Rate, rupiah exchange rate, Gross Domestic Product (GDP)

Abstract

Foreign direct investment (FDI) is the first step in development activities and economic growth. This study aims to determine the influence of macroeconomic variables (Inflation, BI Rate, rupiah exchange rate, Gross Domestic Product (GDP), and Foreign Exchange Reserves on Foreign Direct Investment in Indonesia. This research uses quantitative methods of secondary data from the financial statements of companies listed on the Indonesia Stock Exchange in 2016-2022. The results of this study show that only foreign exchange reserves affect Foreign Direct Investment. In contrast, Inflation, BI Rate, Exchange Rate, and GDP do not affect Foreign Direct Investment in Indonesia. Then The results of this study also show that, simultaneously, Inflation, the BI Rate, Exchange Rate, GDP, and Foreign Exchange Reserves significantly affect Foreign Direct Investment.

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