Name

: Husnul Iradati

NPM

: 1506798075

Individual Assignment of Foreign Direct Investment (FDI)

Question : Do you agree or disagree with FDI Policy in Indonesia for the last few years?
Answer : Yes, Im agree with FDI policy in Indonesia for the last few years. As you know, before
the presidency of Mr. Jokowi, Indonesia is just more focused on income tax rather
than the income from the business world. The government was waiting the result of
the tax but the businesses variable is just stuck. I think, if the business variable make
a movement, so do the income tax. I mean that if the government can be more
focused on the business variable, itll moving up then will have a side effect on tax
too, which is moving up too.
Seeing the situation, Mr. Jokowi considered that the source of growth which still has a
high potential is an investment. Now, Indonesia is being intensively economic
development through increased investment in various sectors. The era of free market
with the globalization as a trigger of the competition among the other country, force
the government to conduct aggressive policies in an attempt to optimize all existing
investment opportunities. Competition between the other countries that fight over the
investment should be a booster for government to fixed the policies in the field of
investment that can give a positive stimulus for investors to invest in Indonesia.
Because of that, Mr. Jokowi released a policy that cut off the process of doing
business in Indonesia, such as licensing process or procedures and the time to
complete each procedure, to improve the investment climate in Indonesia.
Although Indonesias competitiveness is still low, I see that the government is
committed to increasing the foreign direct investment in Indonesia. Its because of the
change of rank in The Ease of Doing Business - World Bank version. Its moving up
from 120th (2015) to 109th (2016 1st quarter). The government also undertake the
development of infrastructure to support the investment in Indonesia. So the
conclusion is, Im agree with FDI policy in Indonesia for the last few years.