PENGARUH PELAYANAN PUBLIK TERHADAP PERKEMBANGAN INVESTASI ASING DAN PENYERAPAN TENAGA KERJA PADA INDUSTRI MANUFAKTUR D1 KOTA BATAM

The industrial sector is the backbone of Batam Island's economic growth. The Product Domestic Regional Bruto ( PDRB ) figure of 2003 shows a 7,73 % increase and the industry sector ranks first by contributing 70.73 % to this growth. This significant development was also able to attract and absorb 143.775 worKers, which is 75,5 % from the total 187.842 wokers on the island. In order to keep this momentum going, it is imperative to create a favourable and condusive business climate and environment to attract more entrepreneurs to invest on Batam Island. The purpose of this research is to know how public services affect foreign investments and attract worKers to find employment on the island particularly in manufacturing industry. It also serve as an feedback to the Batam Administration in planning and managing Satam's future by providing better public services I facilities to investors. In this research primary data is analyzed by using the Structural Equational Model (SEM). Analysis results show that the impact of public services on foreign investment is quite significant as well as the fact that worKers are attracted to be employed in the manufacturing Industry in Batam. Key Word: Public Services Improvement never en