Foreign Investment in Indonesia

Foreign Investment in Indonesia

Towards the era of liberalization, trade and foreign investment began to discuss. It is considering that for the sustainability of national development is needs more funds. Funds that needed for economic development cannot be satisfied only from the national government and private investment. Therefore, to cover the shortage of funds in the country, it needed foreign investment.

Foreign investment, particularly in countries that are developing, including in Indonesia is intended for business development and to explore the potential of getting an economic power by using the potential of capital, skills, and technology that brought by foreign investors to accelerate the economic development of the developing countries as long as it does not lead to continued dependence and does not harm the national interest.

In Indonesia, foreign investment although it already existed in a few decades but it remains as the controversial one. There are rarely criticisms about development that is not associated with the foreign investment. There is an accusation say that foreign investment has aggravated Indonesia's dependence against foreign. Foreign investment has been pressing indigenous entrepreneurs, do not put labor in its place and only a few contribute in new technologies and capital.

But it must also be recognized that until now, Indonesia is still requires the existence of a transfer of technology and the transfer of skills that can only be achieved through foreign investment inflows into Indonesia. By allowing the entry of foreign capital into Indonesia, besides being complementary of domestic factors of production, foreign investment should be directed according to the areas that have been prioritized by ...

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...3 billion.

So, foreign investment actually has become pros and cons in Indonesia. Because a lot of problems caused by foreign investment in Indonesia. The dominance control of foreign whether it be from the government or foreign investors or from international bodies are often detrimental to the people. However, foreign investment is also has an important role in efforts to accelerate economic recovery, beside to cover the lack of development funds, foreign investment will also spur the competition for domestic business circles.

Therefore, people should not be afraid of foreign investment in Indonesia. Because although there are disadvantages that come from foreign investment, also cannot deny that basically foreign investment is to improve the national economy and the modernization of the national economic structure in addition to managing natural resources owned.