What Drives Foreign Direct Investments in Indonesia?

This note identifies some of the main determinants of foreign direct investments (FDI) to Indonesia, focusing in particular on the role of economic policies. To that end it develops a novel empirical analysis on the effects of various provisions in...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	Policy Note
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	FOREIGN DIRECT INVESTMENT TREATIES BILATERAL INVESTMENT TREATIES TRADE POLICY FOREIGN EQUITY REGULATION INVESTMENT CLIMATE FREE TRADE AGREEMENT
Online Access:	http://documents.worldbank.org/curated/en/360411540797707636/Policy-Note-What-drives-Foreign-Direct-Investments-in-Indonesia http://hdl.handle.net/10986/30944

id	okr-10986-30944
recordtype	oai_dc
spelling	okr-10986-309442021-05-25T09:19:44Z What Drives Foreign Direct Investments in Indonesia? World Bank FOREIGN DIRECT INVESTMENT TREATIES BILATERAL INVESTMENT TREATIES TRADE POLICY FOREIGN EQUITY REGULATION INVESTMENT CLIMATE FREE TRADE AGREEMENT This note identifies some of the main determinants of foreign direct investments (FDI) to Indonesia, focusing in particular on the role of economic policies. To that end it develops a novel empirical analysis on the effects of various provisions in Indonesia’s Negative Investment List (DNI) on planned FDI inflows. It also assesses the impact of Bilateral Investment Treaties (BITs) and specific trade policy actions on FDI inflows to Indonesia. The results suggest that restrictions on foreign equity limits, investment locations, on the size of investors and the types of licenses required all deter planned FDI, with the first two having the strongest effects. The analysis also suggests that terminating a BIT reduces substantially FDI inflows from the affected country and that trade policy can also play an important role in attracting FDI. On the basis of the results of the analyses and the existing empirical evidence, the note draws some policy suggestions to increase FDI inflows to Indonesia. 2018-12-04T20:18:28Z 2018-12-04T20:18:28Z 2017-08 Policy Note http://documents.worldbank.org/curated/en/360411540797707636/Policy-Note-What-drives-Foreign-Direct-Investments-in-Indonesia http://hdl.handle.net/10986/30944 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Notes Economic & Sector Work East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FOREIGN DIRECT INVESTMENT TREATIES BILATERAL INVESTMENT TREATIES TRADE POLICY FOREIGN EQUITY REGULATION INVESTMENT CLIMATE FREE TRADE AGREEMENT
spellingShingle	FOREIGN DIRECT INVESTMENT TREATIES BILATERAL INVESTMENT TREATIES TRADE POLICY FOREIGN EQUITY REGULATION INVESTMENT CLIMATE FREE TRADE AGREEMENT World Bank What Drives Foreign Direct Investments in Indonesia?
geographic_facet	East Asia and Pacific Indonesia
description	This note identifies some of the main determinants of foreign direct investments (FDI) to Indonesia, focusing in particular on the role of economic policies. To that end it develops a novel empirical analysis on the effects of various provisions in Indonesia’s Negative Investment List (DNI) on planned FDI inflows. It also assesses the impact of Bilateral Investment Treaties (BITs) and specific trade policy actions on FDI inflows to Indonesia. The results suggest that restrictions on foreign equity limits, investment locations, on the size of investors and the types of licenses required all deter planned FDI, with the first two having the strongest effects. The analysis also suggests that terminating a BIT reduces substantially FDI inflows from the affected country and that trade policy can also play an important role in attracting FDI. On the basis of the results of the analyses and the existing empirical evidence, the note draws some policy suggestions to increase FDI inflows to Indonesia.
format	Policy Note
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	What Drives Foreign Direct Investments in Indonesia?
title_short	What Drives Foreign Direct Investments in Indonesia?
title_full	What Drives Foreign Direct Investments in Indonesia?
title_fullStr	What Drives Foreign Direct Investments in Indonesia?
title_full_unstemmed	What Drives Foreign Direct Investments in Indonesia?
title_sort	what drives foreign direct investments in indonesia?
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/360411540797707636/Policy-Note-What-drives-Foreign-Direct-Investments-in-Indonesia http://hdl.handle.net/10986/30944
_version_	1764473194284056576

What Drives Foreign Direct Investments in Indonesia?

Similar Items