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Foreign Direct Investment In Indonesia: Fifty Years Of Discourse

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  • J. Thomas Lindblad

Abstract

The topic of foreign direct investment (FDI) has been prominent in assessments of economic development in Indonesia during the past 50 years. In this article I review Indonesia's FDI record in a historical perspective; the current urge to control FDI inflows and the need to augment domestic savings and facilitate technology transfers are not at all new in Indonesia. I draw in particular on the discourse on FDI in this journal, the Bulletin of Indonesian Economic Studies , giving special attention to contributions by this journal to the international literature on FDI and its impact. The article demonstrates that the relation between FDI and economic growth has been less straightforward in Indonesia than elsewhere in Southeast Asia. Although FDI has grown in a restrictive investment climate, on occasion it has failed to do so despite more liberal conditions. This may be attributed to the sustained role of natural resources in determining Indonesia's attractiveness as a host country of FDI.

Suggested Citation

  • J. Thomas Lindblad, 2015. "Foreign Direct Investment In Indonesia: Fifty Years Of Discourse," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(2), pages 217-237, August.
  • Handle: RePEc:taf:bindes:v:51:y:2015:i:2:p:217-237
    DOI: 10.1080/00074918.2015.1061913
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    1. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670, October.
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    Cited by:

    1. Genthner, Robert & Kis-Katos, Krisztina, 2022. "Foreign investment regulation and firm productivity: Granular evidence from Indonesia," Journal of Comparative Economics, Elsevier, vol. 50(3), pages 668-687.
    2. Seema Wati Narayan, 2019. "Does Fintech Matter For Indonesia’S Economic Growth?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 22(4), pages 437-456.
    3. World Bank, 2017. "Indonesia Economic Quarterly, June 2017," World Bank Publications - Reports 30841, The World Bank Group.
    4. Suryono Herlambang & Helga Leitner & Liong Ju Tjung & Eric Sheppard & Dimitar Anguelov, 2019. "Jakarta’s great land transformation: Hybrid neoliberalisation and informality," Urban Studies, Urban Studies Journal Limited, vol. 56(4), pages 627-648, March.
    5. Prasetyono, Pipin & Wibowo, Agung, 2016. "Analysing Indonesia’s Foreign Direct Investment Policy Framework," MPRA Paper 97784, University Library of Munich, Germany.
    6. NAULY Dahlia & HARIANTO & HARTOYO Sri & NOVIANTI Tanti, 2022. "Foreign Ownership And Productivity Of Food Industries In Indonesia," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 130-144, April.
    7. Hal Hill, 2018. "Asia's Third Giant: A Survey of the Indonesian Economy," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 469-499, December.
    8. Genthner, Robert & Kis-Katos, Krisztina, 2020. "Local labor market effects of FDI regulation in Indonesia," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224524, Verein für Socialpolitik / German Economic Association.

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