Dhaha Praviandi K, Hermanto Siregar, Anny Ratnawati, Solikin M Juhro
Since 2010, the low growth of corporate financing and investment in Indonesia has become a matter for policymakers to resolve. This study analyzes the determinants of Capital Expenditures (CAPEX) growth based on the threshold and country characteristics. The study uses the Threshold Autoregressive (TAR) model for the dynamic panel’s sample of 6 cross identifiers at the company’s level and 36 periods from 2011 to 2019. This study shows that Indonesia's export performance is unreliable and volatile. However, during the COVID-19 pandemic, the regression result advises that the companies raise CAPEX and invest more. The monetary authority should also follow this countercyclical policy by providing financial ease. Despite all of the outcomes, it is about time that commodity-exporting countries should become countries that create manufacturing items or boost their sales in the more creative service sector. It will be challenging that the reform should be taken gradually in order to smooth the adjustment.