The Impact of Foreign Direct Investment in Indonesia

The main points that must be done in the implementation of Indonesia's foreign policy is the effort to achieve the urgent national interest, namely tackling the economic situation. To implement the necessary capital not less, although in this case the aid or investment capital from foreign party is just a complementary. 

The relationship in the economic field between the Republic of Indonesia to the other social state at this time has been going well in an atmosphere of mutual friendship and without interfering in the internal affairs of each party and also as long as no harm and will not affect the freedom of Indonesia.
In Foreign Direct Investment there must be procedurs and instructions for foreign direct investment policy implementation to advanced Indonesia. And by that Indonesia wants priority in the framework of the government's economic policy to achieve economic stabilization and rehabilitation.

There are also the positive and negative impact of FDI in Indonesia. First I'll explain the positive impact, namely: 
1. The increase in production and national income target countries.
2. Foreign-direct investment will not burden the balance of payment because there's no obligation to pay the debt and interest. Because the transfer of profits based on the success of foreign companies to invest.
3. Encouraging the develompment regional and sectoral

And the negative impact, namely:
1. May occur against the home government intervention by MNC. So it is possible the policy tend to protect the MNC's made from a variety of threats, including investment and domestic industries.
2. The emergence of the dominance of the industry, which is potentially turn off the domestic industry loses in terms of capital

And nowadays, Foreign Direct Investment in Indonesia increased to 82100 Billion IDR in the first quarter of 2015 from 78700 Billion IDR in the fourth quarter of 2014.

Mega Indah Putri Utami
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