IMPACT OF INVESTMENT, LABOR, AND INFRASTRUCTURE ON JAVA ISLAND ECONOMIC GROWTH 2011-2017

The study aims to determine and analyze the effect of investment, labor, and infrastructure on economic growth in Java in 2011-2017. This research is a quantitative study using secondary data from six provinces in Java (DKI Jakarta, West Java, Central Java, Special Region of Yogyakarta, East Java and Banten) obtained from the Central Statistics Agency. Analysis of the data used in this study is panel regression of fixed effect model data using the General Least Square (GLS) method. The results showed that individually the domestic investment variable, labor, clean water infrastructure had a significant influence on economic growth while foreign investment had no significant effect on economic growth. Suggestions: 1) local governments are expected to increase the potential of each region to attract investors; 2) local governments are expected to create a conducive investment climate and facilitate investment licensing; 3) local governments are expected to increase the allocation of education funds and provide training in foreign languages and skills to the workforce; 4) local governments should make better plans for the distribution of clean water and improve the efficiency of the use of clean water.