The Influence Of Singapore Investment Investment In Indonesia's Economic Growth

Abstract

The importance of investment for a country affects state income or revenue, first the mobility of state investment which is able to encourage economic growth. This research was conducted to see the effect of foreign investment from Singapore on Indonesia's economic growth. The data used in this study are investment data from Singapore and the Gross Domestic Product (Gross Domestic Product) for the period 2004-2018. From the analysis carried out using the SPSS application, the data used is secondary data sourced from. In this research, the method used is quantitative descriptive method with the Ordinary Least Squares (OLS) method. The statistical tests used were the Normality Test, Heterosdasticity Test, and Simple Linear Regression Analysis. The results showed that FDI flows from Singapore had a positive and significant effect on economic growth and the coefficient of determination could explain 64.5 percent of the variation in this model, while the rest was from variables outside this study. In accordance with previous research that has carried out the effect of investment on Indonesia's economic growth, most research results indicate that FDI is an important factor in Indonesia's economic growth. It is hoped that the Government can foster good bilateral relations with Singapore, especially in the investment and investment sector so that the investment given by Singapore to Indonesia can be maintained or even expected to increase so that it can affect Indonesia's economic growth.