DETERMINANTS OF GREEN FDI: A CASE STUDY OF TOP FOREIGN COUNTRY INVESTORS IN INDONESIA
DOI:
10.54443/morfai.v5i4.4249Published:
2025-10-14Downloads
Abstract
This study investigates the determinants of Green Foreign Direct Investment (Green FDI) in Indonesia by examining the effects of energy subsidies and the globalization index on Green FDI inflows. Panel data from six major investor countries during the 2020–2024 period were employed to test the research hypotheses. The results indicate that both energy subsidies and the globalization index have a positive and significant effect on Green FDI in Indonesia. These findings suggest that government policies supporting renewable energy and facilitating global economic integration play a key role in attracting environmentally sustainable investment. The study provides policy implications for decision-makers aiming to promote renewable energy development and advance Indonesia’s transition toward a low-carbon economy.
Keywords:
Green FDI Energy Subsidies Globalization IndexReferences
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Copyright (c) 2025 Riga Sanjaya, Ghazali Syamni, Husaini, Darmawati Muchtar , Jummaini, Aiyub
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