Return : Study of Management, Economic and Bussines
Vol. 5 No. 5 (2026): Return: Study of Management, Economic and Business

Analysis of the Influence of Investment, Labor, and Infrastructure on Economic Growth in Indonesia

Yudi Budi Yuniarso (Universitas Borobudur, Indonesia)
Sugiyanto (Universitas Borobudur, Indonesia)



Article Info

Publish Date
29 May 2026

Abstract

Indonesia, as the largest economy in Southeast Asia, has experienced various economic dynamics following the COVID-19 pandemic, including fluctuations in investment, employment, and infrastructure development. This research analyzes the influence of investment, labor, and infrastructure on Indonesia’s economic growth during the 2020–2025 period. Using secondary data from BPS and related institutions, this study applies descriptive and quantitative analysis. The results show that foreign direct investment increased by 12.7% in Q1 2025, reaching Rp230.4 trillion. The labor force participation rate rose to 69.30% in 2023. Government infrastructure allocation reached Rp423 trillion in 2024, representing an 8% increase from the previous year. All three variables are positively correlated with economic growth, which reached 4.87% in Q1 2025. The interaction among these three variables creates synergy that drives economic growth through a multiplier effect, whereby infrastructure investment increases labor productivity, which in turn attracts further investment and creates a positive cycle for economic development. In conclusion, investment plays a strategic role in increasing production capacity and job creation; labor force participation continues to improve, although it still faces quality-related challenges due to the dominance of the informal sector; and infrastructure development reflects the government’s strong commitment despite the persistent infrastructure gap. The study recommends improving investment quality, strengthening labor training, and accelerating infrastructure development to support national economic targets.

Copyrights © 2026






Journal Info

Abbrev

return

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal RETURN is a double blind peer-reviewed academic journal and open access to social and scientific fields. The journal is published monthly by PT. Publikasiku Academic Solution. The Jurnal RETURN provides a means for sustained discussion of relevant issues that fall within the focus and ...