Consumption and investment are the largest contributors to national income in most countries. Indonesia is one of the countries with the world's largest population, so the largest state revenue comes from consumption and investment, a sector expected to be a driver of the economy. The entry of foreign investment is a significant element in spurring economic growth in many countries. Foreign direct investment (FDI) drives the country's economy. The policy on FDI is inseparable from the central and regional decentralized government system, namely the delegation of authority from the central government to local governments. The objectives of this study are: (i) To examine and analyze the effect of fiscal decentralization policies on the entry of FDI at the district and city levels; (ii) to assess and analyze the influence of economic aspects on the entry of FDI at the district and city levels; (iii) Assessing and analyzing the business aspects of the entry of FDI at the district and city levels; (iv) Assessing and analyzing the influence of district and city levels on the entry of FDI at the district and city levels. The study used mixed method research, a combination of quantitative and qualitative research. Quantitative research uses structural equation modeling (SEM), and data processing uses the analysis of moment structures (AMOS) program. Data sources are secondary data from reports from the Investment Coordinating Board - Ministry of Investment, Ministry of Finance, and Central Statistics Agency. The objects of this research are 514 districts/cities in Indonesia from 2016 to 2020. Qualitative research through focus group discussions (FGD) with informants who are experts in their fields and to obtain in-depth analysis with the NVivo program. Based on the results of the quantitative analysis method, it is found that; (i) the fiscal decentralization policy, as measured through revenue-sharing and government spending on roads, water, and electricity, has a significant and positive effect on FDI; (ii) the economic aspect is measured through regional financial independence, Gross Regional Domestic Product, and renewable and non-renewable natural resources. Renewables have a significant and negative effect on FDI; (iii) business aspects as measured by export trade openness, the number of BUMDs, and the human development Index, have a significant and positive effect on FDI, and (iv) the dummy at the district or city level has a significant and negative effect on FDI. Based on the qualitative analysis method, it was found that the fiscal decentralization policy was able to have an impact on the entry of FDI from the explanations regarding the implementation of the fiscal decentralization policy, the availability of infrastructure, improving the quality of regional spending, and balancing funds. From the economic aspect, there is a link between the adequacy of natural resources and the potential for new renewable energy (NRE), which can become Indonesia's competitive advantage. Recommendations of this study are good governance of regionally owned enterprises, readiness in the new renewable energy sector, local governments must improve the quality of productive spending, and maintain the availability of natural resources, especially in the NRE