Increasing Foreign Direct Investment in Indonesia Through Non-Oil and Gas Export: Effects of Fluctuations in Credit Interest and Fuel Prices

This study aims to examine the magnitude of the influence of non-oil and gas exports on the increase in Foreign Direct Investment (FDI) in Indonesia from 2004-2022, which is influenced by changes in credit interest and the rise and fall of fuel prices. This study uses linear regression analysis techniques with the SPSS-22 and Eviews-10 programs to process secondary data types promptly from sources from the Central Statistics Agency and Bank Indonesia in the period 2004-2022 with a total of 19 observations. Explanatory research design with hypothesis testing, using a descriptive quantitative approach model. The data used in this study is time-ordered from 2004-2022 with Linear Regression analysis techniques. The partial hypothesis is obtained using the statistical T and F tests for simultaneous model hypothesis testing. The findings of this study explain that credit interest, fuel prices, and non-oil and gas exports simultaneously significantly affect FDI in Indonesia. The subsequent results showed that Interest on loans partially had a negative and significant effect on FDI. Meanwhile, fuel prices positively and significantly affect FDI in Indonesia. This research contributes to Indonesian policymakers in finding sources of FDI from non-oil export, particularly credit interest and fuel prices.