The Relation Between Investment and Improving Welfare of Every Province in Indonesia 2007-2017

• Main Author: Pangestu, Gilang
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41581
• Institution: Institut Teknologi Bandung

Investment is a very important thing as capital in improving people's welfare. Investment can come from Domestic Investment and Foreign Investment. Investment is invested in the primary, secondary and tertiary sectors. Investment is hypothesized to be strongly related to welfare. Among the many welfare indicators, there are four indicators that are considered to represent and be considered from investment, namely per capita GRDP, HDI, Open Unemployment Rate, and Percentage of Poor Population. The study was conducted using the Pearson Correlation Test method, Scatter Plot, and labeling in cases in each province in Indonesia from 2007 to 2017 After the study found it was found that Domestic Investment was slightly more influential on welfare compared to Foreign Investment. Every investment sector turns out to have its own impact on welfare. The primary sector does not improve the welfare of society. The secondary sector greatly impacts the potential of the community. The tertiary sector has unlimited potential in improving the welfare of its people but requires superior human resources. Investment has proven to be strongly related to GRDP and is quite related to the percentage of poor people. However, investment turns out to have no direct relationship to HDI and the Open Unemployment Rate.