Investment as one of crucial production factor, play a big role in increasing
production as shown through economic growth. In other words, investment
becomes a shift variable or loco of national economic activities. During in 1980
until 2007, the investment both domestic investment (PMDN) and foreign direct
investment (PMA) has grown rapidly. This investment growth especially PMA,
besides supported non economic factor i.e by regulation and debureaucratisation
which has done by the government, the demand to the invest their capital is
determined economic factor especially macroeconomics variabel.
Macroeconomics factor that influence PMA in Indoenesia i.e Gross Domestic
Product, Labour (proxy with labour productivity), interest rate, and exchange
rate. By using regression analysis with error correction model (ECM), this study
will explore the influence of several macroeconomics variable on PMA in
Indonesia during 1980 until 2007