THE EFFECT OF TRANSPORTATION INFRASTRUCTURE IN LOCATION DECISION OF SOUTH KOREAN INVESTMENT IN JAVA ISLAND

• Main Author: Rahmi Hilna Wulandari (NIM: 25416032), Ratu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30259
• Institution: Institut Teknologi Bandung

Transportation infrastructure has a role in regional economy development, one of them is attracts investment activity. Foreign investment is very important in developing country like Indonesia. South Korean investment is one of foreign investment that is active lately in Indonesia and in the top three with high investment ratio. Up to now South Korean investment is concentrated in Java Island about 94,3% so that can cause development inequality. Similarly, transportation infrastructure is concentrated in Java Island. On the other hand, transportation infrastructure is rarely tested into regression model. This study analyze the influence of transportation infrastructure to South Korean investment location compared to sosio-economic and economic agglomeration aspect. This study was conducted in regions and cities in Java Island that have South Korean investment. Based on simple regression, transportation aspect has less influence than the other two aspects. Furthermore, multiple regression results indicate that transport infrastructure has no significant effect, but the population and agglomeration of South Korean investment has. However, after the variable population is released, the total length of road becomes significant along with South Korean investment agglomeration. This suggests that transport infrastructure is not a key factor in South Korean investment activities. According significant variable, it can conclude that South Korean investment focus on major cities in Java Island.