Indonesia Conference Directory

The research explains the regional economy in Indonesia that is the analysis of regional economy in Indonesia by including total population, infrastructure, PDRB, regional investment, and level of inflation variables. The estimation method in the research was by conducting panel data estimation. The data were collected from credible sources namely Bank Indonesia (BI) and Badan Pusat Statistik (BPS – Central Bureau of Statistics) year 2010 through 2016. The data were analyzed using STATA package program in order to obtain the estimation result of economy analysis model parameter of regional economy in Indonesia that matches the statistical and economic theory criteria. The variables included in the research were Pendapatan Domestik Regional Bruto (PDRB – Gross Regional Domestic Income), Panjang Jalan (PJLN – Road Length), Rupiah Rate toward US Dollar, Indeks Pembangunan Manusia (IPM – Human Development Index), Belanja Daerah (BD – Regional Expenditure), Penanaman Modal Dalam Negeri (PMDN – Domestic Investment), Penanaman Modal Asing (PMA – Foreign Investment), Jumlah Penduduk (JP – Total Population) dan Indeks Pembangunan Manusia (IPM). After a series of econometric tests namely heterocedasticity, multi colinearity, Chow and Hausman, the estimation of empirical findings of PMA, PMDN, BD, Currency Rate, IPM and PJLN have significant and positive effects toward PDRB. Meanwhile, JP variable does not have any effects toward PDRB.