The Influence of Political Stability on Indonesia's Gross Domestic Product



  • Fadhlurahman Labib Economics Department, Faculty of Economics and Business, University of Jember, Indonesia
  • Sofyan Adi Lila Economics Department, Faculty of Economics and Business, University of Jember, Indonesia


Political Stability, Investment, Policy, Indonesia


The goal of this study is to examine how political stability impacts Indonesia's Gross
Domestic Product (GDP). Political stability is a crucial factor in a country's economic
development, because it can affect the investment climate, economic growth, and people's
welfare. The Central Bureau of Statistics and other relevant organizations' secondary data
were used as secondary data sources in this study's qualitative descriptive analysis of the
literature. The data collected covers a specific relevant time period and includes indicators
of political stability and GDP. The results of the analysis show that political stability has a
significant influence on GDP in Indonesia. High political stability tends to create conditions
conducive to sustainable economic growth. This is reflected in increased investment,
expansion of the industrial sector, and increase in national income. In the Indonesian
context, good political stability can increase investor confidence, both domestic and
foreign, to invest in various economic sectors. In addition, political stability also provides
legal certainty and consistent policies, which help create a favorable investment climate.
The government needs to maintain political stability through actions that promote inclusive
political participation, fair law enforcement, and consistent and transparent policies. These
efforts will strengthen investor confidence, stimulate investment, and promote sustainable
economic growth.