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Regency Minimum Wage in Crease Policy and Investment Growth in Sidoarjo Regency

Ahmad Riyadh Umar Balahmar

Universitas Muhammadiyah Sidoarjo, Indonesia




Government policies related to the increase in minimum wages have been regulated in Law Number 11 of 2020 concerning Job Creation and Government Regulation Number 36 of 2021 concerning Wages. This study aims to explain the extent of the influence of the increase in the regency minimum wage, the number of workers, the number of business units, and the value of production on the value of investment in Sidoarjo Regency. This explanatory quantitative research uses saturated samples. The primary data of this study were obtained from four Regional Apparatus Organizations of Sidoarjo Regency, namely: Investment and One-Stop Integrated Service Office; Industry and Trade Office; Manpower Office, and the Central Bureau of Statistics. The primary data were the value of the regency minimum wage, the number of workers, the number of business units, the value of production, and the value of investment from 2008-2022. The collected data were analyzed using multiple linear regression analysis. The value of the regency minimum wage, the number of workers, the number of business units, and the value of production together affect the increase in investment in Sidoarjo Regency with an R coefficient of 93.3%. The most influential factor in increasing investment in Sidoarjo Regency is the value of the regency minimum wage and the number of workers. This research shows that there is a difference with previous studies that the increase in investment occurs due to an increase in the regency minimum wage and the number of qualified workers.


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