This document discusses foreign direct investment (FDI) in Indonesia. It notes that FDI has risen 12.4% in the first quarter of 2018, with Singapore being the largest foreign investor. Indonesia is an attractive market for FDI due to its large population and middle class. FDI provides capital for Indonesia's development and creates jobs, but can also threaten local companies. While FDI helps accelerate development, some sectors are now dominated by foreign investors.
This document discusses foreign direct investment (FDI) in Indonesia. It notes that FDI has risen 12.4% in the first quarter of 2018, with Singapore being the largest foreign investor. Indonesia is an attractive market for FDI due to its large population and middle class. FDI provides capital for Indonesia's development and creates jobs, but can also threaten local companies. While FDI helps accelerate development, some sectors are now dominated by foreign investors.
This document discusses foreign direct investment (FDI) in Indonesia. It notes that FDI has risen 12.4% in the first quarter of 2018, with Singapore being the largest foreign investor. Indonesia is an attractive market for FDI due to its large population and middle class. FDI provides capital for Indonesia's development and creates jobs, but can also threaten local companies. While FDI helps accelerate development, some sectors are now dominated by foreign investors.
This document discusses foreign direct investment (FDI) in Indonesia. It notes that FDI has risen 12.4% in the first quarter of 2018, with Singapore being the largest foreign investor. Indonesia is an attractive market for FDI due to its large population and middle class. FDI provides capital for Indonesia's development and creates jobs, but can also threaten local companies. While FDI helps accelerate development, some sectors are now dominated by foreign investors.
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INDONESIA FOREIGN
DIRECT INVESTMENT (FDI) Created by: Dela Apriyanti 120210180034 What Is FDI?
• investment flow to a country carried out by multinational
companies to control the production process of the destination country Indonesia as an attractive market Indonesia has a huge population (fourth largest in the world) with a large number of middle-income consumers and is considered to be an attractive retail market. With this condition, Indonesia is very attractive to the foregin investors. Factors that affect FDI • Pull Factor: Government policy that profitable to the investors • Push Factor: Increase in cost of land and labor in the investor’s home country Why do we need the FDI? As a developing country, we rely on the inward FDI as a source of assistance for their growth and development since we don’t have enough capital. FDI in Indonesia • Foreign direct investment (FDI) realization in Indonesia rise 12.4 percent to IDR 108.9 trillion in Q1-2018 (excluding investment in banking and the oil & gas sector). Meanwhile, domestic direct investment grew 11 percent to IDR 76.4 trillion.
a IDR 13,400 per US dollar exchange rate (as was set in the 2018 State Budget), slightly weaker than the IDR 13,300 per US dollar rate that was used in the BKPM's investment data last year. FDI in Indonesia The biggest foreign investor in Indonesia was Singapore. Around USD $2.6 billion worth of FDI in Indonesia originated from this small city state in the first quarter of 2018. As is widely known, many Singaporean companies that invest in Indonesia have their parent companies in China or India. According to BKPM Head Thomas Lembong, investment from India - through Singaporean units - has risen significantly in Indonesia in Q1-2018. Impact of the FDI in Indonesia + FDI has helped to create jobs, which in turn boosted productivity growth and improved access to the global market + Accelerate the pace of development
‾ Threat to the local companies
Conclusion Indonesia cannot be released from foreign investors who invest in Indonesia in carrying out Indonesia's economic development. However, it helps a lot in accelerate the development.
On the other hand, it has some negative impact, cause
many sectors in business is managed by foreign investors. References Safitriani, Suci. (2014). Perdagangan Internasional dan FDI di Indonesia. Buletin Ilmiah Litbang Perdagangan, Vol.8 No.1. Retrieved from http://www.kemendag.go.id/files/pdf/2014/11/19/-1416397117
Lubis, Rizky P and Hendro Sasongko. (2015). Faktor Faktor yang
Mempengaruhi Investasi Asing Langsung pada Sektor Perkebunan di Indonesia. Jurnal Bisnis & Manajemen, 2015, Vol. XVI, No. 2, 80-89. Retrieved from http://www.journal.feb.unpad.ac.id/
Dhanya, R and Dr. S. Ramachandran. (2014). A Study about Foreign
Direct Investment in Indonesia. IOSR Journal of Business and Management, Vol. 16, Issue 12.Ver.I (Dec. 2014), PP 45-4. Retrieved from http://www.iosrjournals.org/iosr-jbm/papers/Vol16-issue12/Version- 1/G0161214547
Speech by President Uhuru Kenyatta During The 16th Summit of The East African Community Heads of State at Kenyatta International Conference Centre, Nairobi On 20th February, 2015