The Effect of Human Development Index, Domestic Investment (PMDN), and Foreign Direct Investment (PMA) on Labor Absorption in the Sulawesi Region, 2016–2024
Keywords:
Labor Absorption, Human Development Index, PMDN, PMA
Abstract
This study aims to analyze the influence of the Human Development Index (HDI), Domestic Investment (PMDN), and Foreign Investment (PMA) on labor absorption in the Sulawesi region during 2016–2024, This study uses a quantitative approach with secondary data obtained from the Central Statistics Agency (BPS) and analyzed using panel data regression. Based on the results of the model selection regression test through the Chow test and the Hausman test, it was obtained that the Fixed Effect Model (FEM) is the most appropriate model. The results of the study show that simultaneously HDI, PMDN, and PMA have a significant effect on labor absorption, with the F Test (Simultaneous) producing a probability value of 0.00000 (< 0.05). Partially, HDI and PMDN have a significant effect. Showing that improving the quality of human resources and domestic investment have an important role in optimizing labor absorption Meanwhile, FDI has no significant effect, indicating that foreign investment has not been able to absorb labor optimally.
References
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Astuti, Riska Dwi, and Gugun Gunawan, 'Foreign Investment and Labor Absorption in West Java Province', Journal of Economic and Financial Policy, 2.2 (2024), pp. 188–93, doi:10.20885/jkek.vol2.iss2.art10
Atria Tiffany Widyaningsih, Sani, Joko Suseno, Agus M Murdiani, 'Factors Influencing Labor Absorption in Indonesia', Integra Economic Journal, 14.1 (2024), pp. 55–68
Destiana, Ajeng, and Nano Prawoto, 'Analysis of Factors Affecting Labor Absorption in the Trade Sector: A Case Study in 14 Regencies/Cities in East Java', Journal of Economics Reseacr Adn Social Sciences, 2.2 (2018), pp. 130–35
Etika Sari, Feda, and Agus Sumanto, 'The Influence of PMA and PMDN on Labor Absorption in the Processing Industry Sub-Sector of Mojokerto Regency', Business and Education, 1.10 (2021), pp. 1011–24, doi:10.17977/um066v1i102021p1011-1024
Gani, Heryanto, Meimoon Ibrahim, Moh Arif Novriansyah, and Anggita Permata Yakup, 'The Effect of the Number of Labor Force and the Development Index on Labor Absorption', JEMAI: Journal of Economics, Management, and Accounting, 2.1 (2023), pp. 29–38
Gujarati, Damodar N., Basic Econometrics / Damodar N. Gujarati, Dawn C. Porter. — 5th Ed. p. Cm, Includes Bibliographical References and Index. (Douglas Reiner, 2013)
Hafiz, Emil Abdhal, Meidy Haviz, and Ria Haryatiningsih, 'The Influence of GDP, UMK, IPM on the Absorption of Labor in West Java Regency/City 2010-2020', Journal of Research in Economics and Business, 1.1 (2021), pp. 55–65, doi:10.29313/jrieb.v1i1.174
Hutami, Riske Yuliana, and Novya Zulva Riani, 'Ecoscience: Scientific Journal of Economics and Development The Role of Human Capital Investment and Physical Capital in Increasing Labor Productivity Growth in Domestic Indonesia, Such as Investment in the Formation of Gross Fixed Capital which is a Standard of Living', Scientific Journal of Economics and Development, 11.1 (2022), pp. 30–40
Ilawati, 'The Influence of Economic Growth, Human Development Index (HDI) and Capital Expenditure on Regency/City Labor Absorption in West Kalimantan', Journal of Development and Equity (JPP), 11.4 (2022), pp. 1–23
Nurichsan, Alfandiary Raihan, and Eni Setyowati, 'Analysis of the Influence of Investment, Human Development Index, Regency/City Minimum Wage and Government Expenditure on Labor Absorption in Regencies/Cities of North Sumatra Province in 2019-2021', Journal of Economics and Public Policy, 6.1 (2023), pp. 50–62
Rahayu, Anisa, Yuliana, and Isthafan Najmi, 'The Effect of Domestic Investment and Foreign Investment on Labor Absorption', Proceedings of SEMDI-UNAYA, 685–692, 2019
Ramadanisa, Nadhifa, and Nunuk Triwahyuningtyas, 'Analysis of Factors Affecting the Human Development Index in Lampung Province', SIBATIK JOURNAL: Scientific Journal of Social, Economic, Cultural, Technological, and Educational Fields, 1.7 (2022), pp. 1049–61, doi:10.54443/sibatik.v1i7.121
Rista Y.Lumban Gaol, and Joko Suharianto, 'The Effect of Domestic Investment and Foreign Capital on Investment and Labor Absorption in North Sumatra Province', MUQADDIMAH: Journal of Economics, Management, Accounting and Business, 2.1 (2023), pp. 236–49, doi:10.59246/muqaddimah.v2i1.599
Salsabilla, Rahmatuz Zainiya, Tony Seno Aji, 'The Influence of GDP, Minimum Wage, Investment on Labor Absorption in East Java Province', 5.2 (2025), pp. 127–36
Sitompul, Thomson, and Yansen Simangunsong, 'The Analysis of the Impact of GDP, FDI, Minimum Wage on Employment in Indonesia', International Journal of Management, Entrepreneurship, Social Science and Humanities, 2.2 (2019), pp. 53–62, doi:10.31098/ijmesh.v2i2.17
Soraya Pudjaningrum, Efrilizia, and Moh Athoillah, 'Determinants of Labor Absorption in the Industrial Sector: Panel Data Analysis in West Java Province', Jdep, 8.1 (2025), pp. 1–18
Susilowati, Adelia Silvia Dwi, 'Factors of Labor Absorption on the Island of Java', 07.04 (2023), pp. 531–39
Vadilla Mutia Zahara, Cep jandi Anwar, MICROECONOMICS (An Introduction) (CV. INDONESIAN SCIENCE MEDIA, 2021)
Wafiqah, Ulya, 'Thesis on Determinants of Labor Absorption in the Eastern Region of Indonesia (KTI)', Thesis, 2023
Wahyuni, Dita Putri Eka, Kukuh Arisetyawan, Lucky Rachmawati, and Ladi Wajuba Perdini Fisabilillah, 'The Effect of Investment on Labor Absorption in the Large Industrial Sector in Sidoarjo Regency', Simki Economic Journal, 7.1 (2024), pp. 63–71, doi:10.29407/jse.v7i1.521
Weir-Smith, Gina, and Simangele Dlamini, 'Hit the Road: Spatial Characteristics of Labour Absorption in South Africa', Professional Geographer, 76.3 (2024), pp. 331–42, doi:10.1080/00330124.2023.2300801
Published
2026-04-30
How to Cite
Muhammad Muntazhar Sulaiman, Patta Tope, Kalvin A. Parinding, Laendatu Pembonan, Mohamad Ichwan, & Muh. Afief Mubayyin. (2026). The Effect of Human Development Index, Domestic Investment (PMDN), and Foreign Direct Investment (PMA) on Labor Absorption in the Sulawesi Region, 2016–2024. International Journal of Health, Economics, and Social Sciences (IJHESS), 8(2), 1602~1612. https://doi.org/10.56338/ijhess.v8i2.10920
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Copyright (c) 2026 Muhammad Muntazhar Sulaiman, Patta Tope, Kalvin A. Parinding, Laendatu Pembonan, Mohamad Ichwan , Muh. Afief Mubayyin
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