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Ni Luh Ayu Suda Sucandrawati
Universitas Mahendradatta
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Green Economy and Its Influence on Foreign Direct Investment in Indonesia Ni Luh Ketut Ayu Sudha Sucandrawati
Nomico Vol. 2 No. 7 (2025): Nomico - August
Publisher : PT. Anagata Sembagi Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62872/pzbx5c96

Abstract

This study aims to analyze the impact of green economy policies on Foreign Direct Investment (FDI) flows in Indonesia, focusing on sectors that support sustainability, such as renewable energy, green technology, sustainable agriculture, and waste management. The approach used was a data panel regression analysis, which examined the relationship between green economic policies (independent variables) and FDI flows (dependent variables), with controls for macroeconomic variables such as GDP and inflation. The data used are secondary, obtained from reliable sources such as the Investment Coordinating Board (BKPM) and Bank Indonesia, with a period of 2010-2023.The results of the regression analysis show that green economy policies, including renewable energy and sustainable agriculture policies, do not have a significant influence on FDI flows. The insignificant coefficient and p-value on most variables indicate that the policy has not been effective enough in attracting foreign investment. Nonetheless, sectors related to green policies show the potential to increase FDI with improved policies and regulations. The conclusion of this study is that Indonesia needs to strengthen green economy policies, increase incentives, and improve infrastructure and regulations to attract more FDI in the green sector.
Co-Authors Anggraeni Nisa Rachmawati Ayi Maulana Bahtiar Efendi Dewa Ayu Sinta Dewi Erni Febrina Harahap I Dewa Nyoman Usadha I Gede Arya Pering Arimbawa I Gusti Ayu Pradnya Paramitha I Kadek Adi Putra I kadek donny wishanesta I Ketut Merta I Made Wira Adi Kusuma I Putu Agung Galih Pradnyana Putra I Putu Ardinada I Wayan Tirta Sinar Jaya Muh. Syaiful Saehu Ni Kadek Ariani Ni Kadek Sri Rita Indriyani Ni Ketut Murdani Ni Luh Bella Citra Dewi Ni Luh Parmi Widiasih Ni Made Yusmini Ni Putu Andini Desiyanti Laksmi Rizal Priyanto Samuel PD Anantadjaya Suhendar Suhendar Tanti Widia Nurdiani