Effect of Wage,Inflation and Exchange Rate on the Investment Policy in Sidoarjo District,Indonesia

The purpose of this study is to know and analyze the effect of wage variables on regional investment policy, the influence of inflation variables on regional investment policy, and the influence of exchange rate variables on investment policy of the Region on Labor. In this study, the population taken is the entire workforce whose data comes from the Central Bureau of Statistics in Sidoarjo which amounted to 64,792 workers. Data analysis using multiple linear regressions with the help of SPSS program version 20 showed that there is an influence of wages, inflation, and exchange rate on local investment policy. Based on the results of calculations and test results conducted, it can be explained that there is an effect of wages on regional investment of labor followed by the characteristics of inflation on labor that affects the exchange rate of investment. This illustrates for policymakers which empirical evidence exists in a series of time to test the theoretical basis while establishing fiscal, monetary, or exchange rate policies to stabilize output and employment by using interest rates, money supply, and exchange rates as instruments for achieving goals.