PEMODELAN REGRESI SPASIAL INVESTASI LUAR NEGERI YANG MASUK KE INDONESIA Modeling of Foreign Investment in Indonesia Using Spatial Regression

One of the important factors in the growth of a country's economy is investment. Sources of investment
are divided into two, namely foreign investment and domestic investment. There are many benefits of
foreign investment. These benefits are such as for development, employment, tax revenue, increasing
foreign exchange, international trade, strengthening friendship with foreign countries and much more.
The purpose of this research is to modeling of foreign investment in Indonesia using spatial regression.
The predictor variables used are the number of labor and the net monthly salary. Based on the results of
research analysis obtained information that the West Java province is the highest province to get
investment funds from abroad. The highest net monthly salary in Indonesia is DKI Jakarta province. The
highest number of labor in Indonesia is West Java Province. Based on the results of the Lagrange
Multiplier test which showed a significant Lagrange Multiplier (lag) with a p-value < α = 5%. That's
shows for the number of labor, the net monthly salary, and the foreign investment in Indonesia fulfill the
spatial dependencies assumption. Based on the spatial regression model shows the number of labor, the
net monthly salary, and the weighting has a significant impact on foreign investment in Indonesia.
Keywords: foreign investment, regression, spatial.