ANALISIS KONSEKUENSI PEMBANGUNAN EKONOMI AKIBAT KEJAHATAN DI INDONESIA

Abstract

Feeling safe is one of the important rights that every human being must have. This is stated in the 1945Constitution of the Republic of Indonesia Article 28G paragraph 1. The existence of thing crime will affect people's decisions in to do some economic activities, this causes the economic wheels to be hampered in a region. The success of economic development can’t be separated from the role of investment, both from domestic and foreign investment simultaneously. The investment is expected to be allocated as well as possible. The purpose of this study is to analyze the effect of crime variables, are total crime, crime rate and noncriminal variables are Domestic Investment and Foreign Investment on Gross Regional Domestic Product (GRDP) in Indonesia in 2015-2019. This study uses panel data from 32 provinces in Indonesia from 2015-2019. The analytical tool that used in this study is panel dataregression with the best model selection, is the fixed effect model. The results show that total crime variable has a negative and significant effect on Indonesia's GRDP, moreover crime rate variable hasa negative and insignificant effect on Indonesia's GRDP, meanwhile the non-criminal variables are Domestic Investment, and Foreign Investment, have positive and significant impact on Indonesia's GRDP.