<![CDATA[This study analyzes the role of foreign direct investment in promoting regional economic development in Indonesia. Using the panel data analysis method for the period 2020-2024, this research examines the impact of FDI on regional economic growth, technology transfer, and employment absorption. The results show that FDI has a significant positive impact on regional economic growth with a coefficient of 0.234. Technology spillover effects have been proven to increase domestic firm productivity by 15.2% in the same industry. FDI also successfully absorbed 650,172 workers in Q3 2024. Manufacturing and downstream sectors became the main growth drivers with a contribution of 21.6% of total investment. West Java dominates FDI absorption, with US$2.5 billion, followed by Central Sulawesi at US$2.1 billion. This study recommends strengthening downstream policies and improving domestic companies' technology absorption capacity to maximize FDI benefits for regional economic development.]]>
Copyrights © 2026
