The Influence of Political Stability on Indonesia's Gross Domestic Product

Abstract

The goal of this study is to examine how political stability impacts Indonesia's Gross Domestic Product (GDP). Political stability is a crucial factor in a country's economic development, because it can affect the investment climate, economic growth, and people's welfare. The Central Bureau of Statistics and other relevant organizations' secondary data were used as secondary data sources in this study's qualitative descriptive analysis of the literature. The data collected covers a specific relevant time period and includes indicators of political stability and GDP. The results of the analysis show that political stability has a significant influence on GDP in Indonesia. High political stability tends to create conditions conducive to sustainable economic growth. This is reflected in increased investment, expansion of the industrial sector, and increase in national income. In the Indonesian context, good political stability can increase investor confidence, both domestic and foreign, to invest in various economic sectors. In addition, political stability also provides legal certainty and consistent policies, which help create a favorable investment climate. The government needs to maintain political stability through actions that promote inclusive political participation, fair law enforcement, and consistent and transparent policies. These efforts will strengthen investor confidence, stimulate investment, and promote sustainable economic growth.