Pengaruh Penanaman Modal Dalam Negeri Dan Penanaman Modal Asing Terhadap Penyerapan Tenaga Kerja

Abstract

This study aims to determine the effect of domestic investment and foreign investment on employment in Indonesia. This research is a quantitative research. The data used are secondary data from 32 provinces in Indonesia in the 2014-2017 period obtained from the Central Statistics Agency. Data analysis using panel data with fixed effect regression models processed with Eviews 10. The results showed that: 1) Domestic investment (PMDN) had a positive and significant effect on employment with a probability value of 0.0004. 2) Foreign investment (PMA) has a positive and significant effect on employment with a probability value of 0.0036. 3) Adjusted R2 in this research is 0.998124, this means that the contribution of all independent variables in explaining the dependent variable is 99.85%. The government can make the policies needed to encourage increased domestic investment and foreign investment to be realized and developed so that capital stock can be maximally utilized to improve the economy so that it can absorb more labor.