Year: 2024 | Month: October | Volume: 11 | Issue: 10 | Pages: 478-494
DOI: https://doi.org/10.52403/ijrr.20241044
Investment Analysis of the Manufacturing Industry Sector During the Industrial Revolution 4.0 on Provincial PDRB in Indonesia
Ivana Irene Sitompul1, Rujiman2, Sukardi3
1Postgraduate Students Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
Corresponding Author: Ivana Irene Sitompul
ABSTRACT
During the ten-year period, the manufacturing industry sector has become a sector that contributes to economic growth in Indonesia. However, the distribution of GRDP in each island of Indonesia has not been maximized, this shows that the natural resources owned have not been utilized optimally, industries still tend to only supply raw materials which are then marketed abroad and in the end we buy them back at a higher price. The reason is that the application and use of advanced technology has not been maximized, especially at this time when the industry has entered the Industrial Revolution 4.0. This study aims to see the effect of advanced technology consisting of Internet Users, Software, Machinery and Equipment and Education Level on GRDP in Indonesia. The data used is secondary data from 2017-2021. The type of data in this study is panel data. The analysis technique in this study is the panel data regression technique with the Ordinary Least Square (OLS) method of the e-views 10 program. The results of this study indicate that machinery & equipment, internet users, software and education level together have a simultaneous relationship to the GRDP of Provinces in Indonesia. The variables Machinery and Equipment, Software and Internet Users have a positive and significant influence on the GRDP variable of Provinces in Indonesia. Meanwhile, the level of education has a negative influence on the GRDP of provinces in Indonesia.
Keywords: Provincial GRDP in Indonesia, Manufacturing Industry, Software, Machinery and Equipment, Education Level and Internet Users
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