ANALYSIS OF FACTORS INFLUENCING INVESTMENT DECISIONS IN THE CONSTRUCTION OF A CEMENT PLANT IN WAMENA

The high price of cement in Wamena is mainly caused by limited logistics access, dependence on long distance distribution, and inadequate supporting infrastructure.This study analyzes the factors influencing investment decisions in the construction of a cement plant in Wamena, evaluates project feasibility from economic, social, and environmental perspectives, and formulates strategic recommendations for stakeholders. The research applied a mixed-methods approach by combining qualitative and quantitative data. Data were collected through interviews, questionnaires, observation, documentation, and literature review.Qualitative data were analyzed through data reduction, data presentation, and conclusion drawing, while quantitative data were examined using Partial Least Squares - Structural Equation Modeling (PLS-SEM). The results indicate that economic, social-environmental, and infrastructure factors have positive and significant effects on investment decisions. Economic factors are the most dominant determinant, followed by social environmental factors and infrastructure.