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All Journal Jurnal Ilmiah Ekonomi dan Manajemen Indonesia
Fandiko Arya Putra
Universitas Negeri Jakarta
Economics, Econometrics & Finance

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Pengaruh Penanaman Modal Asing, Penanaman Modal dalam Negeri, dan Upah Minimum Provinsi terhadap Penyerapan Tenaga Kerja di Provinsi DKI Jakarta, Jawa Barat dan Banten Tahun 2010-2024 Fandiko Arya Putra; Herlitah Herlitah; Saparuddin M
Jurnal Ilmiah Ekonomi dan Manajemen Indonesia Vol. 2 No. 1 (2026): JANUARI -JUNI
Publisher : Indo Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.63822/rj61x303

Abstract

This study aims to analyze the influence of Foreign Direct Investment (FDI), Domestic Investment (DI), and Provincial Minimum Wage (PMW) on labor absorption in DKI Jakarta, West Java, and Banten during 2010-2024. These three provinces are strategic economic centers in Java, yet their Labor Force Participation Rates remain below the national average. This research employs a quantitative approach with panel data regression using the Fixed Effect Model. Data were obtained from BPS and BKPM across 45 observations. The results indicate that FDI has a positive but not significant effect on labor absorption (coefficient 258.5232; p-value 0.0782). DI has a positive and significant effect on labor absorption (coefficient 35.06602; p-value 0.0068). PMW has a negative but not significant effect on labor absorption (coefficient -0.431825; p-value 0.2150). The Adjusted R² of 0.9826 indicates that 98.26% of labor absorption variation is explained by the three independent variables. These findings imply that domestic investment plays a more significant role in creating employment opportunities compared to foreign investment and minimum wage policies in the region.
Co-Authors H Herlitah Saparuddin M