Syamsudin Syamsudin(1*), Anton A. Setyawan(2)

(1) Fakultas Ekonomi Universitas Muhammadiyah Surakarta, Jawa Tengah
(2) Fakultas Ekonomi Universitas Muhammadiyah Surakarta, Jawa Tengah
(*) Corresponding Author


Unemployment has become one of the major problems in Indonesia in the last eight years. SBY administration decides many economic policies in order to overcome the problem, but it seems not enough. However, the rate of foreign direct investment in Indonesia is increasing in the last three years. Macroeconomic indicators show that everything in its right track. This research analyzes the effects of FDI rate to employment rate in Indonesia. This research uses empirical data from ADB from 1983-2004. This research uses error correction model as a tool of analyses. The result shows that FDI rate does not have effect to employment rate. It means that FDI does not open job opportunity for many unemployer in Indonesia. In the end, this paper discusses the possibility of industrial policy in order to provide direction for government to develop Indonesia’s industry.


unemployment, foreign direct investment, industrial policy, ECM

Full Text:



Baier, Scott L dan Jeffrey H Bergstand (2001), the Growth of World Trade; Tariffs, Transport Costs, and Income Similarity, Journal of International Economics Vol 53 pp 1-27.

Byrne, David dan Eric Strobl (2004), Defining Unemployment in Developing Countries: Evidence from Trinidad and Tobago, Journal of Development Eco-nomics Vol 73 pp 465– 476.

Demirbag, Mehmet dan Hafiz Mirza (2000), Factors Affecting International Joint Venture Success: an Empirical Analysis of Foreign-Local Partner Relationships and Performance in Joint Ventures in Turkey, International Business Review Vol 9, pp 1-35.

Dhanani, Shafiq, (2004), Unemployment and Underemployment in Indonesia, 1976-2000: Paradoxes and Issues, Research Paper, Geneva: International Labour Office.

Greenaway, David, Wyn Morgan dan Peter Wright (2002), Trade Liberalization and Growth in Developing Countries, Jour-nal of Development Economics Vol 67 pp 229-244.

Gujarati, Damodar (2003). Basic Econome-trics, Boston: McGraw Hill Internatio-nal.

Insukindro (1991), Regresi Linear Lancung dalam Analisis Ekonomi: Suatu Tinjau-an dengan Satu Studi Kasus di Indonesia, Jurnal Ekonomi dan Bisnis Indonesia, Vol 1 pp 88-23.

Insukindro (1999), Pemilihan Model Ekono-mi Empirik dengan Pendekatan Koreksi Kesalahan, Jurnal Ekonomi dan Bisnis Indonesia (JEBI), Vol 14, No.1.

Kishi, Mashumi (2003), Foreign Direct Investment by Japanese Firms and Corporate Governance:in Relation of Monetary Policies of China, Korea and Japan, Journal of Asian Economics Vol 13, pp 731-748.

Kuncoro, Mudrajad (2000), Ekonomi Pemba-ngunan; Teori, Masalah dan Kebijakan, Yogyakarta: UPP AMP YKPN.

BPS, (2006). Laporan Tahunan Badan Pusat Statistik, (Online) (http://www.bps.go. id, diakses 8 Agustus 2006)

Lipsey, Robert E dan Fredrik Sjoholm, (2004). Foreign Direct Investment, Education and Wages in Indonesian Manufacturing, Journal of Development Economics Vol. 73.

Mankiw, Gregory N., (2003), Macroecono-mics 5th Edition, New York: Worth Publisher.

Ramstetter, Eric D., (2004) . Labor Produc-tivity, Wages, Nationality, and Foreign Ownership Shares in Thai Manufac-turing, 1996-2000, Journal of Asian Economics Vol 14 pp 861–884.

Roy, Sudipta Dutta (2004), Employment Dynamics in Indian industry: Adjust-ment Lags and the Impact of Job Secu-rity Regulations, Journal of Develop-ment Economics Vol 73 pp 233– 256.

Sanyal Rajib N dan Turgut Guvenli (2000), Relations between Multinational Firms and Host Government: the Experience of American-owned Firms in China, International Business Review Vol 9, pp 119-134.

UNCTAD (2004), Prospects for FDI flows, TNC Strategies and Promotion Policies: 2004-2007, Laporan Penelitian.

Zulkieflimansyah (2000), Orientasi Baru Industri Nasional dan Pentingnya Dukungan Kemampuan Teknologi dalam Usahawan, 25 (8)

Article Metrics

Abstract view(s): 1531 time(s)
PDF: 3085 time(s)


  • There are currently no refbacks.