Zainuddin Iba
Indonesian National Islamic University, Aceh Indonesia

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

Does Foreign Direct Investment Reduce Growth Government Debt? Dina Hendiyani; Zainuddin Iba
International Journal of Economics (IJEC) Vol. 2 No. 1 (2023): January-June
Publisher : PT Inovasi Pratama Internasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55299/ijec.v2i1.438

Abstract

The problem of fiscal deficits in the Indonesian economy has prompted the government to increase debt as a solution to reduce the deficit. Debt withdrawal in the long term without the support of an increase in state revenues has had a negative impact. Government debt increased sharply. Efforts to increase state revenue through tax collection in post-Covid 19 economic conditions that have not yet recovered will only reduce economic activity. This requires efforts to suppress government debt growth amidst a fiscal deficit. This study aims to analyze the effect of foreign direct investment, inflation and the exchange rate on government debt. Foreign direct investment is believed to be a source of financing that cannot be made through state revenue. Especially public infrastructure financing. The study concluded that it was found: foreign direct investment, inflation, and the exchange rate had a significant effect on government debt. Thus, government efforts are needed to encourage the growth of foreign direct investment, through policies that are oriented towards increasing foreign direct investment.