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Foreign investment company in Indonesia

Foreign investment company in Indonesia

Foreign investment company in Indonesia is a form of investment made in Indonesia in various sectors, such as in development sector, tourism sector, transportation sector, mining sector and invest in Indonesia (foreign investment in Indonesia) in other sectors according to regulation and approval from the government.

Foreign investment is undertaken and approved by the government as well as to invest capital for use as in the process of development and regional planning of each region. So that foreign investment in Indonesia is very supportive and many foreign investors are indeed a lot of glance at the condition and territory of Indonesia which they think has an advantage in some mining sectors or other sectors that they can use so that foreign investors have an interest to invest foreign capital and start their business in Indonesia compared to their own countries.

Foreign investment company in Indonesia also gets things for investors and can help the economy in Indonesia, with foreign investment and development or by doing a project in addition to helping the economy in Indonesia itself, by making foreign investment can also help reduce the difficult unemployment rate to be overcome in Indonesia especially teenagers who are unemployed can apply for jobs and fill the void of time by working and making money, so the unemployment rate can be overcome.

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Doing foreign investment is also not fully able to ease the burden on the people of Indonesia because basically our own territory is controlled by foreign countries, but because we are not able to process it at least we still get a little profit by doing foreign investment.

Foreign investment in Indonesia also has nearly 100 projects implemented in Indonesia from various sectors, and the results of some sectors in foreign investment have reached Rp.80 trillion.

So that foreign investment can provide little assistance to the Indonesian economy amid the uncertain global economic conditions. Most of the countries in the region of Southeast Asia much ogled by foreign investors such as Thailand, Vietnam, Malaysia and including Indonesia. In fact, according to Asia business outlook survey 2015 that Indonesia is ranked second in the main investment destination countries after China is ranked first.

In running foreign investment as a form of business competition for foreign investors there are some advantages that we can get with the foreign investment.

Advantages of Foreign Investment Company in Indonesia

Some of the advantages we can get as one form of foreign investment are:

  1. The existence of new capital
    By doing foreign investment in Indonesia we can get capital so it can be utilized for development process in Indonesia.
  2. Increase the country’s foreign exchange
  3. Establishment of new company
    With foreign investment it can create a new company and increase tax revenue for the country.
  4. Labor
    With the new companies can overcome the problem of unemployment, especially the large unemployment rate in Indonesia. With the foreign investment and the existence of new companies that require labor can overcome the problem of unemployment.
  5. Experienced in technology
    Gain experience in technology and gain knowledge and learn more about technology.
  6. Political protection
    With the establishment of foreign companies in the territory of Indonesia can create a political protection in the territory of Indonesia that overshadow foreign companies.
  7. Area security
    Regional security also ensures the security of the territory of Indonesia.
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To that end, the government needs to be selective and smart in guarding foreign investment so as not to be lied to by host-countries countries. but instead the government is able to exploit the benefits of FDI as much as possible for the benefit of the nation. More recently President Jokowi signed some foreign investment cooperation with China. Surely this needs to be escorted together.

Need for Active Government Role

In order to boost the achievement of FDI, the government needs to function optimally in building a competitive investment climate. Accelerating infrastructure development and shortening business settlement time should be a top priority. The government should also target a significant increase in FDI and upgrading from Indonesia’s investment grade.

Without the government’s active role, the positive impact of FDI may not be felt significantly and only provide benefits to foreign companies simply by giving it a great opportunity to exploit the Indonesian market. On the other hand the negative impact of FDI can be real. The positive externalities of FDI need to be pursued and do not happen automatically.

In the end, foreign investment policy cannot be separated from the industry policy as a whole because it is related to the strategy of developing national industry and national economic development which is competitive and sustainable. Foreign investment policy can not be based solely on efforts to attract foreign investment in a narrow-minded fashion without taking into account the overall development strategy of the industry.

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Foreign investment company in Indonesia does not always have a bad impact on the homeland, but by doing investment by foreign investors and doing business in the territory of Indonesia and with the permission of domestic business actors to cooperate also can maintain its existence in the business world and give a good impact to economy in Indonesia. One of the gateways for foreign investment in Indonesia is the agency of the Coordinating and Investment Agency that serves the licensing and investment management.

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