How to cite:
Dyfan Jaya, Tony Kwok and Feryanto Marcus. (2021 Analysis Of Investment
Increase Contribution To GRDP In 2020 Central Java Province. Journal
Eduvest. 1(6): 446-451
E-ISSN:
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Eduvest – Journal of Universal Studies
Volume 1 Number 6, June 2021
p- ISSN 2775-3735- e-ISSN 2775-3727
ANALYSIS OF INVESTMENT INCREASE CONTRIBUTION TO
GRDP IN 2020 CENTRAL JAVA PROVINCE
Dyfan Jaya, Tony Kwok and Feryanto Marcus
Batam International University
E-mail: [email protected], [email protected] and
[email protected]
ARTICLE INFO ABSTRACT
Received:
May, 26
th
2021
Revised:
June, 8
th
2021
Approved:
June, 16
th
2021
One of the ways for the government to find out the level of
economic growth is by calculating the value of national
income, especially which is the focus of the government to
be able to increase the per capita income of the
community in each region so that it can contribute to local
revenue which will also increase national income, the
government's strategies and efforts to increase it. This
research method uses descriptive analysis presented with
statistical data, statistical data used in the form of tables,
diagrams, graphs and others. Descriptive analysis using
various sources of literature and articles as material for
analyzing research problems to describe the investment
contribution of Central Java province to increasing
national income.
The conclusion that can be drawn from
the results of the analysis of the article is the strategy of
the regional government of Central Java Province to
increase local revenue and support efforts to increase
national income through investment by setting up
investment licensing regulations for both PMA/PMDN
easily and transparently as well as promotion and training
to increase regional investment figures, besides that the
most important point to increase investment realization is
the consistency of innovation and creativity of the
government and the community to form new ideas that
can compete with the global market.
Dyfan Jaya, Tony Kwok and Feryanto Marcus
Analysis of investment increase contribution to GRDP in 2020 Central Java
province 447
KEYWORDS
National Income, Investment Strategy, Risk Management
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
INTRODUCTION
The economy of a country has many components as a measure of the
achievement of economic success, including the level of income, poverty, labor,
education, and so on which have binding characteristics on the value of a country's
income (Warsita, 2011). In general, economic growth can be measured through an
increase in the amount of national income during a certain time/period (Adyatma &
Oktaviani, 2015). The high value of a country's national income can be an indicator of the
results of the assessment of the amount of goods and services that can be produced in a
certain period by the Indonesian state (Purba & Darmawan, 2018). The magnitude of the
production value shows the level of community welfare and the ability of the community
to earn income according to the standard provisions set by the Indonesian government,
especially Indonesia as a developing country that continues to strive to implement
strategies to increase national income for a high level of economic growth.
Aside from being a measurement of the level of economic growth, national
income can also be an appropriate benchmark for determining the success and failure of a
country's economic strategy (Anwar, 2014). This is because the determination of the level
of state income, especially which is directly practiced in Indonesia, uses measurements of
the price level of goods, employment opportunities, education, per capita income, and the
position of the balance of payments abroad (exports/imports) (Paramita, 2016). From
several analyzes, the discussion and application of theories related to national income as
one of the indicators of Indonesia's economic growth often becomes the pros and cons by
critics of the macroeconomic component as the basis of calculation used for measuring
national income. One of the supporting components of national income is found in
GRDP, namely the amount of added value for goods and services produced by various
production units in all regions of a country within a certain period of time with a
calculation period of usually one year being one of the government's focuses in the last 5
years to measure the level of economic growth (Lumy, Kindangen, & Engka, 2021).
Due to the many factors related to the calculation of national income which is
basically influenced by various supporting components both from internal and external to
the state, related to these calculations there is the application of theories and principles of
calculating national income in Indonesia in order to achieve the goals of prosperity and
welfare of the community (Rakhmawati, 2015). To achieve this goal, the increase in
Indonesia's national income needs to experience a consistent increase based on several
components that have been calculated.
Based on these problems, the author will analyze the strategy for the contribution
of increasing investment figures as a supporting factor for increasing regional gross
domestic product as one of the components of calculating national income. The author
will analyze in more detail, especially in the area of Central Java Province as one of the
provinces with a fairly dense population. The high level of human resources in Central
Java should be able to increase the per capita income which can boost the value of the
original income of the Central Java region. From that side, the author will analyze how
investment can be a solution to increasing regional income as in the study (Arliman,
2018). With the quality of creative and innovative human resources to be able to realize
investment, both for the community and the government who work together to realize the
Eduvest – Journal of Universal Studies
Volume 1 Number 6, June 2021
448 http://eduvest.greenvest.co.id
investment realization target.
Investment can be interpreted as "an activity carried out by an individual (natural
person) or legal entity (juridical person), in an effort to increase and or maintain the value
of its capital, both in the form of cash (cash money), equipment (equipment), immovable
assets. , intellectual property rights, and expertise (Hayati, 2016). According (Hasibuan,
2019) on this basis it is necessary to build awareness and understanding of investment. In
this case, the author will analyze the important part of investment that needs to be made
by local governments as a form of regional autonomy that implements independence in
each region. To achieve this, it is necessary to design priorities and development
strategies by increasing regional investment both from the domestic sector and from
abroad, policies that can be carried out by the government by directing the elimination of
high-cost economies, investment licensing procedures, guaranteeing legal certainty,
guaranteeing business certainty, reduce policy overlap between the center and the regions,
improve investment institutions that are competitive, transparent and non-discriminatory,
and create targeted incentives in an effort to spread investment more and more (Republik
Indonesia, 2012).
Investment is a very important object in economic growth which is indirectly
related to the value of national income (Jufrida, Syechalad, & Nasir, 2016). The role of
investment as one of the chains to generate national income that does not only focus on
one industry but directly on several industries from the largest to the smallest units
(Basmar et al., 2021). The seriousness of the Indonesian government to increase the
investment rate, especially Central Java Province in order to achieve regional original
income which is relatively the same as some surrounding areas so that there is a balance
of regional welfare by implementing a strong strategy and exploring the potential results
of Central Java as the government's effort to achieve the goal of high national income
value (Anas, 2015). Therefore, here the author will analyze problems related to the
contribution of increasing investment in Central Java Province as a component of
increasing the value of national income which is analyzed from the point of view of
regional success with strategic planning and creative and innovative work efforts as part
of the factor in increasing Indonesia's national income The object of the problem in
writing this article focuses on strategic analysis of the contribution of investment to the
value of the gross regional domestic product of Central Java Province in 2020 as one of
the components of national income which will be analyzed in depth related to internal and
external factors that affect the achievement of investment realization targets so that it can
it is known the value of the investment contribution achievement on the gross regional
domestic product.
RESEARCH METHODS
This research method uses descriptive analysis presented with statistical data,
statistical data used in the form of tables, diagrams, graphs and others. As a form of real
data analysis without statistical testing to describe in detail the information presented.
Descriptive analysis using various sources of literature and articles as material for
analyzing research problems to describe the investment contribution of Central Java
province to increasing national income. The main data source is from the analysis of the
contribution of increased investment 2020 GDP of central java province and related
institution data that are relevant to the research as well as data sources that are processed
to produce new data as supporting evidence for research conducted done.
The data collection technique used in this article uses a literature study, taking
this literature study is done by collecting data relating to secondary data collection from
Dyfan Jaya, Tony Kwok and Feryanto Marcus
Analysis of investment increase contribution to GRDP in 2020 Central Java
province 447
several academic sources relevant to the research problem. Data analysis for processing
from various sources of data that has been obtained is analyzed by reading, studying,
reviewing
Dyfan Jaya, Tony Kwok and Feryanto Marcus
Analysis of investment increase contribution to GRDP in 2020 Central Java
province 449
and comparing various literature sources and interpreting the results of data analysis, so
that data analysis can be known to answer all research problems.
RESULTS AND DISCUSSION
The achievement of the investment realization target that has been given a target by
the central government to be realized is as much as the target of achieving the investment
value from both PMA/PMDN for the last 5 years in Central Java Province still tends to be
inconsistent in maintaining the investment target achievement figure that has been
determined. a big event in early 2020 that made the world economy greatly decline due to
the Covid-19 pandemic, of course it was a very big step for the regional government of
Central Java Province to maintain investment achievement targets, based on press release
data from the Central Java Province DPMPTSP with total investment realization in
Central Java in 2020 amounted to IDR 50.24 trillion, exceeding the target set at IDR
24.89 trillion (202%).
Based on the data below, it can be seen that the largest contribution in achieving
the investment realization target in 2020 is supported by an increase in domestic
investment, especially from the MSME sector, based on some news information and
research that has been carried out due to the lack of activity and productivity of human
resources during the Covid-19 pandemic. 19 which is very influential on the lack of
income per capita of the community because many companies are closed due to the
pandemic, this forces the community to be more innovative and creative in forming
businesses for survival, this is the point of success of the Central Java provincial
government which of course also cannot escape the quality of qualified human resources
to form a small business that can even become a big business in the midst of a pandemic
situation that is still not over, even based on calculations from Central Java Province
DPMPTSP data, the value of domestic investment has increased by 111.65% from 2019,
this is shows that the quantity of regions to manage the investment rate is very high in
order to boost the gross regional domestic product which of course also greatly influences
the value of national income from the high per capita income of the people of Central
Java Province.
Figure 1 FDI/PMDN Investment Realization in Central Java 2015-2020
Source: DPMPTSP Central Java Province, 2021
Dyfan Jaya, Tony Kwok and Feryanto Marcus
Analysis of investment increase contribution to GRDP in 2020 Central Java
province 451
Table 1 Percentage of Investment Value in PMTB 2015-2020
Source: Data processed, Central Bureau of Statistics, 2021
Based on the analysis of the value of GRDP in 2020, the Gross Fixed Capital
Formation in TW III shows a contribution of 29% of the Gross Regional Domestic
Product, this refers to the component of GDP with the largest contribution, namely
Household Consumption Expenditure of 59% which is used for all expenditures
consumption activity (government spending).
In addition, the rate of economic growth can be seen from the PMTB figure which
has a fairly high contribution, especially for investment activities. This is because the
results of GRDP expenditure for PMTB financing which consists of 6 constituent
components including Buildings, Machinery & Equipment, Vehicles, Other Equipment,
CBR, and Intellectual Property Products which are a form of Regional Investment or
Assets. For this reason, it can be said that investment contributes to the value of gross
regional domestic product.
From the data above for approximately 6 years, it can be concluded that there is an
increase in the contribution of investment realization to PMTB except in 2020 there is a
decline due to the COVID-19 pandemic, so it can be concluded from the data that
investment has a high enough contribution to the quality of the increase in GDP through
the high value of PMTB from the realization of PMA/PMDN investment, so that
investment indirectly contributes to the high value of the Gross Regional Domestic
Product of Central Java Province in 2020.
CONCLUSION
The conclusion that can be drawn from the results of the analysis of the article is
the strategy of the regional government of Central Java Province to increase local revenue
and support efforts to increase national income through investment by setting up
investment licensing regulations for both PMA/PMDN easily and transparently as well as
promotion and training to increase regional investment figures, besides that the most
important point to increase investment realization is the consistency of innovation and
2
015
201
7
201
8
201
9
2
020
Gross
Fixed
Capital
Formation
3
2.335.2
02,14
264.716.1
06,23
285
.045.112,
84
298.877.2
69,25
278.024
.570
Investment
Realization
2
6.040.6
84,60
51.
539.187,8
8
59.
269.113,3
2
59.
503.280,0
0
5
0.242.4
81
Percentage
1
1,2082
3894
19,
46960788
20,
79288879
19,
90893458
1
8,07123
769
1
1%
19
%
20
%
19
%
1
8%
Eduvest – Journal of Universal Studies
Volume 1 Number 6, June 2021
450 http://eduvest.greenvest.co.id
creativity of the government and the community to form new ideas that can compete with
the global market.
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