This study empirically examines and analyzes the impact of several macroeconomic indicators on economic growth, namely the extent to which the variables of poverty, human development index (HDI), foreign direct (FDI) and domestic investments (DMI) affect gross regional domestic product (GRDP) at constant prices in 2010 according to expenditure in Indonesia. By using panel data regression and data sourced from 32 provinces throughout Indonesia, the results show that poverty has a negative but not significant effect, FDI has a positive and significant effect, and HDI has a positive and significant effect. On the other hand, Domestic Investment has a positive but not significant effect on GRDP. In an effort to increase the value of GRDP, HDI, and investment (FDI and HDI) that can reduce poverty, the government, the private sector, and the community play an active role in cooperating in planning and implementing effective and efficient strategic program activities, including maintaining social security stability and politics, sustainable reform in all sectors by encouraging the use of domestic products, empowering elements of society including Micro, Small and Medium Enterprises, facilitating various vocational skills training for productive workers and drafting investment-friendly licensing governance regulations. The development of human resources must accompany economic development to reduce the negative impact of economic growth.

Poverty is a classic yet interesting topic of discussion because the problem of poverty has not been solved. This study analyzed the role of economic growth in mediating the effects of investment, inflation, and Human Development Investment (HDI) on poverty in Indonesia. Using the multiple regression method of path analysis and the data from 32 provinces in Indonesia, the results showed that investment had a positive effect on economic growth and poverty, but inflation had no effect on economic growth and poverty while HDI had a positive effect on economic growth but a negative effect on poverty. Economic growth mediated the effect of investment and HDI, but not the effect of inflation on poverty. Hence, it can be said that it is not enough for the government to only prioritize economic growth, optimal investment, a higher level of HDI, and a stable inflation rate. They must also strive to reduce inequality between regions, support labour-intensive, well-targeted and direct investments in the real sector, and involve all stakeholders to achieve an effective and efficient national development in the context of poverty reduction.How to Cite:Fitriady, A., Silvia, V., & Suriani. (2022). Does Economic Growth Mediate Investment, Inflation, and Human Development Investment on Poverty in Indonesia? Signifikan: Jurnal Ilmu Ekonomi, 11(2), 437-456. https://doi.org/10.15408/sjie.v11i2.26145.JEL Classification: C33, E22, O11