The Effects of Budget Deficit, Foreign Debt, and Foreign Direct Investment on Indonesia's Economic Growth

Rafidah Rizky Nasution (Universitas Islam Negeri Sunan Kalijaga Yogyakarta,Yogyakarta, Indonesia)
Muhammad Wakhid Musthofa (Universitas Islam Negeri Sunan Kalijaga Yogyakarta,Yogyakarta, Indonesia)

PERADABAN JOURNAL of ECONOMIC and BUSINESS
Vol. 5 No. 2 (2026)

This study examines the effects of the budget deficit, Foreign Debt, and foreign direct investment (FDI) on Indonesia's economic growth during the 2008–2024 period. A quantitative approach was employed using secondary time-series data. The data were subjected to classical assumption tests and analyzed using the Ordinary Least Squares (OLS) method with EViews 12. The results show that the budget deficit has a negative and statistically significant effect on economic growth, whereas Foreign Debt has a negative but statistically insignificant effect. FDI has a positive but statistically insignificant effect on economic growth. Simultaneously, the budget deficit, Foreign Debt, and FDI have a statistically significant effect on economic growth. The findings highlight the importance of improving the productivity of deficit-financed spending, strengthening the effectiveness of Foreign Debt utilization, and fostering an investment climate that supports productive FDI. Penelitian ini menguji pengaruh defisit anggaran, utang luar negeri, dan investasi asing langsung (foreign direct investment/FDI) terhadap pertumbuhan ekonomi Indonesia selama periode 2008–2024. Pendekatan kuantitatif digunakan dengan memanfaatkan data sekunder deret waktu (time-series). Data diuji menggunakan uji asumsi klasik dan dianalisis menggunakan metode Ordinary Least Squares (OLS) dengan EViews 12. Hasil penelitian menunjukkan bahwa defisit anggaran berpengaruh negatif dan signifikan secara statistik terhadap pertumbuhan ekonomi, sedangkan utang luar negeri berpengaruh negatif tetapi tidak signifikan secara statistik. FDI berpengaruh positif tetapi tidak signifikan secara statistik terhadap pertumbuhan ekonomi. Secara simultan, defisit anggaran, utang luar negeri, dan FDI berpengaruh signifikan secara statistik terhadap pertumbuhan ekonomi. Temuan ini menyoroti pentingnya meningkatkan produktivitas pengeluaran yang didanai defisit, memperkuat efektivitas pemanfaatan utang luar negeri, dan menciptakan iklim investasi yang mendukung FDI produktif.