Abstract
This research aims to determine: 1) rating of investment attraction based on investor assessment; and 2) the factors which have significant effects on investment attraction of the city. Location research is in Batu city Indonesia with number of samples as 65 investors. The data analysis technique of this study uses a Multiple Regression Analysis. The independent variables used in this study are: 1) infrastructure; 2) labor availability; 3) agglomeration; 4) natural resources, 5) markets; 6) licensing system, and 7) leadership. Investment attraction is indicated with rating assessment by investors. The results show: 1) rating of Batu city investment attraction is high; and 2) licensing system and leadership have significant influences on investment attraction. Based on the result, it is very important for a city to create a conducive climate (pro investment) to attract investors, especially in the ease of the licensing system. In addition, local governments must be able to provide positive signals in the form of commitment for the investment development in Batu city. This is necessary since the city development process really needs investor support.
Highlights
According to Law No 32 of 2004 (UU, 2004) associated with Regional Government which is a revision of Law No 22 of 1999 concerning Regional Autonomy, regional autonomy gives regions the right to manage the own households
According to the some researchs description above, this study aims to examine: 1) the investment attractiveness rating of Batu city based on investors'
The results show that the licensing process has an influence on investment attractiveness
Summary
According to Law No 32 of 2004 (UU, 2004) associated with Regional Government which is a revision of Law No 22 of 1999 concerning Regional Autonomy, regional autonomy gives regions the right to manage the own households. If an area has adequate infrastructure, investors will be interested in investing and the community can carry out daily activities comfortably so that it would have an impact on increasing productivity. The increase in community productivity and the number of investors investing is expected to increase profitability which in turn will have an impact on increasing regional spending (Abimanyu, 2005). It can be said that investment is one of the important things that drives the achievement of quality development. This is partly because investment has an influence on aggregate growth in terms of its ability to boost output and job opportunities, and it has an impact on capital formation which in the long run can increase output potential and maintain growth (Hamid, 2006).
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