Reorientation of Locational Investment Under Environmental Regulation Towards Improvement of Organizational Competitiveness

Abstract

The choice of investment objectives is an important consideration for entrepreneurs who carry out international strategies. The key to the success of this strategy is to occupy the right investment destination. This paper discusses the selection of locational investment destination to improve its competitiveness in Indonesia. In the era of globalization, the role of climate change has increased in business decisions. This study examines the effect of environmental variables on the selection of investment destination and their impact on increasing competitiveness. The analytical method used in this study is a statistical method, using the Structural Equation Model (SEM) approach. The results of the study are as follows: (i) Environmental policies implemented in Indonesia have a positive impact on Indonesia's choice as an investment destination, and (ii) FDI who chooses Indonesia as an investment destination will succeed in improving organizational performance.