Journal of Tourism Economics and Policy
Vol. 6 No. 1 (2025): Journal of Tourism Economics and Policy (January - March 2026) - In Press

Investment and Minimum Wages: Evidence from Indonesia Food and Beverage Manufacturing Industry

Rachman, Muchammad Bintang Cahyo Andhika (Unknown)
Wasil, Mohammad (Unknown)



Article Info

Publish Date
28 Jan 2026

Abstract

This study analyzes the effect of Domestic Investment, Provincial Minimum Wage, and Foreign Investment on the Gross Regional Domestic Product (GRDP) of the Food and Beverage Processing Industry in Indonesia during the period 2014–2024. The research employs a quantitative approach using secondary data obtained from the Central Statistics Agency (BPS). Panel data from 38 provinces are utilized, and the Random Effect Model is selected as the most appropriate estimation method. The results indicate that Domestic Investment does not have a significant effect, while the Provincial Minimum Wage and Foreign Investment have a significant effect on the GRDP of the Food and Beverage Processing Industry. These findings are in line with the current government priority programs, namely industrial downstreaming and the Free Nutritious Meal Program. Therefore, this study is expected to provide policy recommendations for the government in strengthening industrial competitiveness, improving workers’ welfare, and supporting the success of current and future government programs

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Journal Info

Abbrev

jtep

Publisher

Subject

Economics, Econometrics & Finance Public Health Social Sciences

Description

The Journal of Tourism Economics and Policy is published biannually and published in March and November. JTEP also uses the LOCKSS system to ensure a secure and permanent archive for the journal. Concerned with the complex interactions between development and the environment, its purpose is to seek ...