Regional Investment Attractiveness: Rating to 134 Regencies/Cities in Indonesia & Problems on Business Environment

Abstract

Committed to bring regional autonomy policy to a more meaningful existence, KPPOD (Regional Autonomy Watch) again comes up with result of another rating. This time, statistical aspects and dynamic aspects were combined to better rate autonomous regions and capture their real dynamics. Our focuses remain two: policy variables and endowment variables. Policy variables are grouped into two factors, namely institutional factor and sociopolitical factor; endowment variables into three: regional economy, labor and productivity, and physical infrastructure. For the whole, 42 indicators were employed here, each with its value different from others from the perception of business community. The research includes 134 regions, consisting of 97 regencies and 37 cities spread in 26 provinces in Indonesia. Data used in the analysis of indicators were primary and secondary, qualitative and quantitative. Valuation of variables and processing of data were done using AHP (The Analytic Hierarchy Process) method