Unequal economic growth remains a major issue in Indonesian development, particularly in undeveloped regions as stipulated in Presidential Decree 63 of 2020. These regions are a government concern in economic development. This underdevelopment results in underdeveloped regions still facing various challenges to achieve optimal development. Based on this situation, it is important to analyze factors that drive economic growth to serve as considerations for the government in formulating more targeted development policies. Therefore, this study aims to analyze the influence of micro and small industries, labor, HDI, GFCF, and technology on economic growth in underdeveloped regions according to Presidential Regulation Number 63 of 2020. The results show that labor and HDI have a positive and significant impact, while the variables GFCF, technology, and micro and small industries are not significant to economic growth in underdeveloped regions. This finding indicates that micro and small industries, GFCF, and technology have not been able to contribute optimally to driving the economy in underdeveloped regions. For this reason, the government is expected to be able to take appropriate policies to encourage the effectiveness of capital, technology, and micro and small industries so that they can have a more tangible impact on economic growth, especially in underdeveloped regions.
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