This study analyzes the impact of exchange rate, economic growth rate, interest rate, and inflation on Foreign Direct Investment (FDI) inflows in Indonesia during the period 2018-2024. Using monthly time series data, this study adopts a Vector Autoregression (VAR) approach to understand the dynamic relationship between these variables. The results show that FDI has a unidirectional relationship with exchange rate and growth rate, where FDI inflows affect exchange rate stability and economic growth, but not vice versa. In addition, interest rates and inflation have a significant impact on changes in FDI dynamics, with exchange rate fluctuations as the key variable. This study recommends a combination of monetary and fiscal policies to create macroeconomic stability to attract foreign investment in a sustainable manner. Keywords: Foreign Direct Investment (FDI), Exchange Rate, Growth Rate, Interest Rate, Inflation, Vector Autoregression (VAR).
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