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Jakarta Post

Foreign investment and Indonesia's weak human capital

Jakarta   /   Tue, October 31, 2017   /  10:43 am
Foreign investment and Indonesia's weak human capital Pledge to the nation: Students of junior and senior high schools in Bogor, West Java, attend the celebration of the Youth Pledge Day on Oct.28. (Antara/Arif Firmansyah)

Investment in Indonesia is still dominated by foreign direct investment (FDI), which accounted for 61.4 percent in the first half of 2017. Some people may argue that a dependency on FDI may increase the economy’s vulnerability, especially if there is an outflow, but our inability to finance domestic investments means we still need foreign funds. FDI in Indonesia has continued to increase from year to year. According Investment Coordinating Board (BKPM) data, FDI grew 5.8 percent year on year during the first half. This proves that Indonesia is still attractive to foreign investors, as was confirmed by last year’s Global Investment Trends Monitor published by the United Nations Conference on Trade and Development (UNCTAD). The report, which is the result of a survey conducted among CEOs around the world about their investment plans through 2018, indicates that Indonesia ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.