<![CDATA[Purpose: The effects of inflation, interest rates, and exchange rates on economic growth in Indonesia are examined through the mediating role of investment. This research addresse gap in previous studies that have primarily focused on direct macroeconomic effects while providing limited insight into the mechanism through which investment contributes to economic growth.Research Methodology: This study employs a quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.0. The analysis evaluates the measurement and structural models to examine the direct and indirect relationships among macroeconomic variables, investment, and economic growth.Results: The findings reveal that investment is significantly influenced by inflation, interest rates, and exchange rates, while economic growth is positively affected by investment. Furthermore, direct effects of interest rates and exchange rates on economic growth are identified, whereas no significant direct effect of inflation is observed. Investment is found to fully mediate the relationship between inflation and economic growth and partially mediate the relationships between interest rates, exchange rates, and economic growth.Conclusions: Investment is identified as a crucial transmission mechanism that connects macroeconomic conditions with economic growth in Indonesia.Limitations: The limitations of this study are identified in the use of cross-sectional data and perception-based measurements, which indicate the need for future research to incorporate longitudinal approaches and sector-specific analyses.Contribution: This study contributes to macroeconomic growth literature by emphasizing the theoretical role of investment mediation and providing policy insights for strengthening investment-driven economic development.]]>
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