Considerations Affecting Indonesia's Economic Growth: Analysis of 2009-2018 Period

Abstract

This study aims to analyze several variables that affect the growth and decline of the Indonesian economy during the period 2009-2018. The variables that affect are limited to only three, namely FDI (Foreign Direct Investment) or foreign direct investment, exports, and foreign debt. Meanwhile, the variable that causes the decline is the failure to understand the development economic theory approach to fail to apply it in the field. The type of research used is explanatory research with a quantitative approach. The location of this research was conducted at the World Bank. This study's population is the entire time-series data from FDI, exports, foreign debt, and Indonesia's economic growth. The sampling technique collects time-series data for ten years (one decade), namely the years 2009-2018 so that there are 40 samples. The data analysis used is multiple linear regression analysis. The data analysis results in this study indicate that the variables consisting of FDI, exports, foreign debt simultaneously have a significant effect on Indonesia's economic growth. Partially FDI Indonesia's economic development is being impacted significantly. Indonesia's economic development is strongly driven by exports. The effect of external debt on Indonesia's economic growth is important.