Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)

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Determinants of Energy Consumption, Foreign Direct Investment, and Economic Growth in Indonesia

Authors
Idra Wirdoni Putra1, *, Hasdi Aimon1
1Universitas Negeri Padang, Padang, Indonesia
*Corresponding author. Email: idrawirdoniputra@gmail.com
Corresponding Author
Idra Wirdoni Putra
Available Online 16 September 2025.
DOI
10.2991/978-94-6463-839-4_42How to use a DOI?
Keywords
energy consumption; investment; economic growth; population density; industrialization; GDP; inflation; exports; education
Abstract

This study examines energy consumption, foreign direct investment, and economic growth, along with the factors influencing these variables in Indonesia. It adopts a descriptive and associative approach, utilizing a simultaneous equation regression model analyzed through the Two-Stage Least Squares (2SLS) method. The endogenous variables include energy consumption, foreign direct investment, and economic growth, while the exogenous variables consist of population density, industrialization, GDP per capita, inflation, exports, and education. The findings reveal the following: (1) Population density, industrialization, and GDP per capita have a positive and significant impact on energy consumption in Indonesia; (2) Energy consumption and exports positively and significantly influence foreign direct investment, whereas inflation has a negative but insignificant effect on foreign direct investment; (3) Energy consumption, foreign direct investment, and education positively and significantly contribute to economic growth in Indonesia.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
16 September 2025
ISBN
978-94-6463-839-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-839-4_42How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Idra Wirdoni Putra
AU  - Hasdi Aimon
PY  - 2025
DA  - 2025/09/16
TI  - Determinants of Energy Consumption, Foreign Direct Investment, and Economic Growth in Indonesia
BT  - Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
PB  - Atlantis Press
SP  - 491
EP  - 506
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-839-4_42
DO  - 10.2991/978-94-6463-839-4_42
ID  - Putra2025
ER  -