TY - EJOU AU - T1 - Determinant of Indonesian Plantation Industry Investment ERA 4.0 T2 - The Economics and Finance Letters PY - 2021 VL - 8 IS - 1 SN - 2312-430X AB - The plantation management, its performance are determined by its productivity which is influenced by both internal and external factors. The objectives of this study are to determine the effect of inflation, interest rates, exchange rates, and infrastructure on plantation investment in Indonesia, to determine which factors are dominant in plantation investment, and to determine the effect of plantation investment on the gross domestic product of plantations in Indonesia. The method of determining the research area was carried out purposively, namely plantations in Indonesia. This study uses secondary data from annual data from 1990 to 2019 with OLS multiple linear regression data analysis methods. The results of this research are that simultaneously, the variables of inflation, interest rates, exchange rates, and infrastructure have a significant effect on plantation investment in Indonesia. Partially, the inflation and interest rate variables have a negative non-significant effect on investment, while the exchange rate and infrastructure variables have a positive significant effect on plantation investment. Infrastructure is a dominant factor. Investment has a positive significant effect on plantation GDP. The findings of his research are that plantation investment is resistant to shocks from fluctuations in inflation and interest rates. The increase in the rupiah exchange rate against the US dollar provides benefits for foreign investment. Infrastructure as a dominant factor is an attraction and a driver for investment. Investment has a strong and large contribution to the formation of GDP for plantations and their productivity. KW - Exchange rate KW - Inflation KW - Infrastructure KW - Interest rate KW - Plantation GDP KW - Plantation investment. DO - 10.18488/journal.29.2021.81.1.13