<![CDATA[This study aims to analyze the influence of minimum wage and domestic investment (stock of capital) on labor absorption in Indonesia. The main focus is on how the labor supply side can adapt to the evolving demands of the labor market, both in terms of quality and legal protection. The study uses time series data over a nine-year period and is analyzed using multiple linear regression. The independent variables are minimum wage and domestic investment, while the dependent variable is the labor absorption rate. The results show that the minimum wage has a positive but not significant effect on labor absorption. Meanwhile, domestic investment does not have a significant effect on labor absorption. A simultaneous test of both variables also indicates that together they do not have a significant effect on labor absorption. The coefficient of determination (R²) value of 50.4% suggests that other variables not included in the model may influence labor absorption. The study concludes that minimum wage and domestic investment are not sufficient to significantly explain the dynamics of labor absorption during the observed period. Therefore, further exploration is needed on other potentially dominant factors, such as the quality of workforce education, technology, or employment policy.]]>
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