Entry Mode Choice in Doing Business in Indonesia
Hadijanto, Sari Shaviriyani (2006) Entry Mode Choice in Doing Business in Indonesia. [Dissertation (University of Nottingham only)] (Unpublished)
As one of the world's largest emerging market, Indonesia has attracted a significant amount of foreign direct investments (FDI) since the "open door" policy in 1967. The overall trend in foreign investments has led to high growth in Indonesia's industry which consist nearly 66 % of the cumulative FDI from 1967 to 1996. However, Indonesia's investment climate is still poor as Indonesia was ranked 97th out of 102 countries in the World's competitiveness forum in 1993. In contrast, it is believed Indonesia is very potential country with large growth market, abundant numbers of natural resources and cheap labor costs. The heavy dependence on these factors is meaningless if the Indonesian government itself does not support it with the appropriate infrastructure and technology capabilities. Moreover, the situation was worsened when FDI also declined gradually since 1997-1998 financial crisis. While most of Indonesians look at this trend with great concern and worries, in the other hand, most of the foreign investors perceived this as an opportunity for trading and investment prospects as they are able to put investment with the fewer amounts since the collapse of Indonesian rupiah led to the stronger value of dollars.
Actions (Archive Staff Only)