Impact of Foreign Direct Investment and Carbon Emission on Economic Development in Indonesia with Renewable Energy Consumption as a Moderating Variable

Abstract

Indonesia's economic development faces the challenge of achieving sustainability amid global integration. Foreign direct investment (FDI) plays an important role in driving development, but is often accompanied by increased carbon emissions that have a negative impact on the environment. Renewable energy consumption can be a solution to reduce these impacts and support sustainable economic development.The purpose of this study is to see the effect between Foreign Direct Investment and Carbon Emissions on Economic Development in Indonesia with Renewable Energy Consumption, whether it can moderate the relationship between these influences with a time span of 1990 - 2021. The type of research used is descriptive quantitative, which is a descriptive approach with a quantitative approach. The data used is secondary data, this research is time series data research using Multiple Linear Regression Analysis and Moderate Regression Analysis (MRA) methods assisted by IBM SPSS Statistic 26 software. The results of this study indicate that foreign direct investment and carbon emission  has a positive and significant effect on economic development in Indonesia, foreign direct investment and carbon emissions simultaneously affect economic development in Indonesia, renewable energy consumption can moderate by weakening the influence between foreign direct investment and economic development in Indonesia, and renewable energy consumption can moderate by weakening the influence between carbon emissions and economic development in Indonesia