Impact of Economic Growth and FDI on Indonesia Environmental Degradation: EKC and Pollution Hypothesis Testing

This study examines the impact of economic growth and FDI on environmental degradation in Indonesia through a two-hypotheses model. Environmental is crucial matter that needs attention often associated with required by developing countries. Based externality theory, this uses EKC hypothesis, followed pollution haven vs. halo. With time series data from 1980–2021, two hypothesis models were estimated using error correction method. study's results support hypotheses. First, for model, found at an early stage increases degradation, but beyond turning point would reduce ecological degradation. Besides testing renewable energy consumption can caused carbon emissions. Second, it's been increased increase thereby supporting haven. research suggests policymakers should require foreign investors to apply green economy concept supported taxonomy then provide fiscal incentives those who do so.