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All Journal Revenue Journal: Management and Entrepreneurship
Nely Aida
University of Lampung, Indonesia
Economics, Econometrics & Finance

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The Role of the Job Creation Law Policy in Overcoming Indonesia’s Middle Income Trap: Analysis of the Effects of FDI, HDI, and Minimum Wages on the Open Unemployment Rate Yosephin Suci Wulandari; Nely Aida; Arivina Ratih Taher
Revenue Journal: Management and Entrepreneurship Vol 4 No 1 (2026): Revenue Journal: Management and Entrepreneurship (February)
Publisher : CV. Bimbingan Belajar Assyfa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61650/rjme.v4i1.998

Abstract

This study analyzes the effect of Foreign Direct Investment (FDI), Human Development Index (HDI), and Regional Minimum Wage (RMW) on the Open Unemployment Rate (OUR) in Indonesia within the context of the implementation of the Job Creation Law policy. The study aims to examine the role of these variables in supporting Indonesia’s efforts to overcome the Middle-Income Trap. This research employs a quantitative descriptive approach using secondary time series data covering the period 1990–2024. The analysis method applied is the Autoregressive Distributed Lag (ARDL) model to identify both short-run and long-run relationships among variables. The results indicate that FDI has a significant effect on the Open Unemployment Rate in both the short run and long run. In the short run, FDI initially reduces unemployment; however, its lagged effects show a temporary increase in unemployment due to labor market adjustments and the capital-intensive nature of foreign investment. In the long run, FDI significantly reduces unemployment through industrial expansion, productivity growth, and employment creation. Meanwhile, the Human Development Index has a negative but statistically insignificant effect on unemployment, indicating that improvements in human development have not yet been fully aligned with labor market demands. The Regional Minimum Wage also shows a positive but insignificant effect on unemployment, suggesting that wage increases are not the primary determinant of unemployment in Indonesia. Furthermore, the Error Correction Term (ECT) confirms the existence of a long-run equilibrium relationship with a relatively rapid adjustment process. Overall, the findings suggest that productive investment, labor market reforms, and improvements in human capital quality are essential to reducing unemployment and supporting Indonesia’s transition toward a high-income economy.
Analisis Pola Distribusi Prevalensi Ketidakcukupan Pangan di Kabupaten/Kota di Indonesia Tahun 2025 Ana Novianti; Nely Aida; Asih Murwiati
Revenue Journal: Management and Entrepreneurship Vol 4 No 1 (2026): Revenue Journal: Management and Entrepreneurship (February)
Publisher : CV. Bimbingan Belajar Assyfa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61650/rjme.v4i1.1012

Abstract

Persistent regional disparities in food access and distribution pose significant managerial and developmental challenges for Indonesian food security. This study aims to analyze the spatial distribution patterns of food inadequacy prevalence across 514 regencies and municipalities in Indonesia in 2025 to inform more effective regional management policies. Utilizing secondary data from official government institutions, this research adopts a quantitative spatial approach using GeoDa software, performing thematic mapping, Moran’s I spatial autocorrelation, and Local Indicators of Spatial Association (LISA) analysis. The findings reveal a strong positive spatial autocorrelation (Moran’s I = 0.804), indicating that food inadequacy is not randomly distributed but forms distinct clusters. High-High clusters, or insecurity hotspots, are predominantly concentrated in Eastern Indonesia—specifically in Papua, Maluku, and East Nusa Tenggara—driven by geographical isolation and inadequate infrastructure. Conversely, Low-Low clusters are concentrated in Java and Bali, benefitting from superior economic development and market accessibility. These results conclude that food inadequacy is strongly influenced by interregional development disparities, highlighting the need for spatially integrated management strategies. Policymakers should transition toward a region-based approach, prioritizing infrastructure connectivity, strengthening local food distribution systems, and reducing socio-economic inequalities to ensure targeted and sustainable food security interventions.
Co-Authors Ana Novianti Arivina Ratih Taher Asih Murwiati Yosephin Suci Wulandari