developing countries, can be encreased activity, one of them through the
encouragement of investment. Investments are investing
activities, either directly or indirectly with the hope in time the owners of the
capital get some benefits from the results of the capital investments. Nowadays,
FDI (Foreign Direct Investment) have became an important feature of the
global economics system.
Investment) plays a crucial role in an economy.
flows of fund into and out of a country through investment pipeline has a
significant impact on the economy of the country.
use of technology, like information and communication are increasingly
sophisticated also encourage foreign investment, because investors can
determine the condition of candidate countries to be invested capital more
easily. As the rise of transnational
corporations in the global economy, it also increases the global FDI.
country through its encouragement of economic growth, because FDI is able to
contribute in the parts of the economy as a benchmark of the national economy,
such as GDP (Gross Domestic Product), the total investment in the host country
and the balance of payments. Apart from the
growth, FDI also promote development through transfer of technology to the
process in the manufacture of goods / services, increase management skills be
able to open up markets and help tackle unemployment through increased
employment being generated due to increased business activities originating
from the investment. These points have illustrated that FDI
as one indicator of a country’s economy, because FDI through its contribution
to the economy is able to influence national economic measures. Currently,
the FDI to the attention of the government.
government seems serious in introducing Indonesia to the presence of foreign
investors in order to invest in Indonesia.
how about conditions of foreign direct investment in Indonesia?
1967) have been issued to attract foreign capital in an effort to build the
economy of Indonesia. Explanation of FDI (Foreign Direct
Investment) or PMA (Penanaman Modal Asing) contained in Law No. 11/1970
which states that “the notion of capital investment in this law only
covers foreign direct investment made by or based conditions the provisions of this law and
used to run a company in Indonesia, in the sense that the owners of capital
directly bears the risk of investment “.
Law No.11 / 1970, it is known that Foreign Direct Investment (FDI) only covers
FDI directly or FDI.
Koordinasi Penanaman Modal (BKPM) RI on Foreign Direct Investment (FDI) in
Indonesia 2010-2015 based on quarterly data is relatively increased. The
latest data on FDI Indonesia in December 2015 reached 7.9 billion US $. In
addition to the data from the years 2010-2015 quarterly PMA, PMA data is
grouped also in trends by sector, location, country of origin and economic
corridor in January-December 2015. In the realization data by sector from
January to December 2015, the largest investments are in the mining sector by
4017.20 million US $ with 1,066 projects and is the lowest sector industrial
medical instrument, precision, optical and clocks amounted to US $ 6.87 million
to 13 projects. In the realization of data based on the
location of January to December 2015, the largest investment was in West Java
location of 5738.71 million US $ with 4,497 investment projects and locations
with the lowest was in West Sulawesi amounted to 2.03 million US $ with 24
projects. Realization data by country of origin
from January to December 2015, the largest investments were Singapore amounted
to 5901.18 million US $ and the lowest was Khyrgistan amounted to 0.01 million
US $, and the combined state of 9734.01 million US $. Data
last group, which is based on economic corridor, the highest FDI in Java
Corridor amounted to 15 433 million US $ and lowest in Bali and Nusa Tenggara
Corridor amounted to 1265.1 million US $.
Modal of the Republic of Indonesia (January 21 2016)
Koordinasi Penanaman Modal (BKPM) of the Republic of Indonesia, it is known
that foreign direct investment in Indonesia increased over the last 5 years. However,
according to the data of trends by sector, location, country of origin and
economic corridors, seems to be the government’s attention in improving the
investment value. The government needs to make efforts to
increase the value of foreign investment to the sector, location or economic
corridor which is still low and maintain or improve the sector, location and
economic corridor that has a high value of its foreign investments. The
advantages of each region or sector can be a weapon for increased foreign
investment. Given the regional autonomy, the
central government through local governments should be prudent related
investments in the area. The government must be able to convince
investors about the guarantee on the capital they invest and provide comfort
also for the citizens who are in the business activities of investment returns,
meaning that business activity in an area must also be able to improve the life
of people in the area. In addition, the government also needs
to encourage foreign investment remains low.
that could become advocates for increased investment in a country such economic
conditions, political stability and legal certainty and incentive policies. Those
things are apparently still an issue that should be studied more deeply by the
Indonesian government in order not to interrupt the flow of foreign investment