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All Journal Lentera Demokrasi: Jurnal Ilmu Sosial, Politik, Hukum, Ekonomi dan Pemerintahan
Indri Nailatul Ma'rifah
Universitas Darul Ma'arif Indramayu
Religion Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Social Sciences

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Economic Development: Development Theories and Their Implementation in Indonesia Sifah Faoziah; Indri Nailatul Ma'rifah; Hudallah Hudallah
Lentera Demokrasi: Jurnal Ilmu Sosial, Politik, Hukum, Ekonomi dan Pemerintahan Vol. 1 No. 4 (2025)
Publisher : Penerbit Hellow Pustaka

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61166/ld.v1i4.23

Abstract

Economic development is a nation’s effort to improve the welfare of its people by increasing income levels, expanding equal opportunities, and transforming the economic structure. For Indonesia, economic development is of great importance because it can help reduce poverty, create employment opportunities, and enhance the nation’s competitiveness at the international level. However, economic development is not solely about increasing economic growth figures. In reality, challenges remain in the form of regional disparities, social inequality, and difficulties in maintaining environmental sustainability. Several studies also indicate that economic growth in Indonesia has not been evenly distributed across regions, and that inclusive and environmentally sustainable growth still requires significant improvement. Therefore, it is essential to study theories of economic development and examine their application in the Indonesian context so that the development process can become more equitable, inclusive, and sustainable.
Investment and Capital Investment in Indonesia: PMDN, PMA, and Investment Policies Indri Nailatul Ma'rifah; Rifqi Rifqi
Lentera Demokrasi: Jurnal Ilmu Sosial, Politik, Hukum, Ekonomi dan Pemerintahan Vol. 1 No. 4 (2025)
Publisher : Penerbit Hellow Pustaka

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61166/ld.v1i4.24

Abstract

Investment and capital investment are important factors in driving economic growth and national development. Investment is defined as the allocation of funds to financial and real assets with the objective of generating future returns, accompanied by a certain level of risk. Meanwhile, capital investment refers to the placement of capital, originating from both domestic and foreign sources, to undertake business activities that contribute to increased production capacity, job creation, and economic growth. This paper discusses the concepts of investment and capital investment, the types of investment based on form, source of capital, time horizon, and investor involvement, as well as the role of investment in Indonesia’s economic growth. The findings indicate that domestic investment (PMDN) and foreign direct investment (PMA) have a positive impact on the increase in Gross Regional Domestic Product (GRDP), although their effects vary across sectors and regions. Foreign direct investment has been shown to promote technology transfer and the expansion of the industrial sector, while domestic investment strengthens the local economy. Nevertheless, the implementation of investment in Indonesia continues to face several challenges, particularly related to legal uncertainty, overlapping regulations, and the effectiveness of policies at the regional level. Therefore, consistent government policies, improvements in infrastructure and human resource quality, and regulatory harmonization are required to ensure that the benefits of investment are distributed equitably and sustainably.
Co-Authors Hudallah Hudallah Rifqi Rifqi Sifah Faoziah