dc.description.abstract | Investment is a driver of economic development in Indonesi. Realized investment may be affected by two factors, namely economic governance and capital expenditure areas. The purpose of this study was to analyze the relationship between the realized investment with economic governance and capital expenditures. This study uses cross section data in 2011 with the OLS method and analysis unit 142 counties or cities in Indonesia. The independent variables used in this study was a score of Local Economic Governance consisting of local infrastructure, Private Sector Development Programme, local government interaction with business, land access, and business licensing, and other independent variables, namely capital expenditures area. The results of the analysis show that four independen variables has a positive relationship to realized investment in Indonesia. Meanwhil, Private Sector Development Programme were negatively related to realized investment in Indonesia and access to land does not have a significant relationship to the realized investment | en |