Abstract:
Indonesia and Thailand engage in the competition of Foreign Direct Investment (FDI) for Electric Vehicle (EV) industry. Both of the countries see this industry as a promising industry due to the environmental concern and depletion of fossil fuel in the future. In order to achieve this ambition, they attract other countries to invest through their policies. This study aims to identify determinant factor of FDI in EV industry, analyse the strategy to attract FDI, and see the competitiveness between Indonesia and Thailand in EV manufacturing. Hence, qualitative method used by comparing Indonesia and Thailand through Porter Diamond Model. Porter Diamond Model is used to see the attractiveness and competitive advantage between Indonesia and Thailand. The model consists of four parts such as factor of conditions; demand conditions; related and supporting business; firm strategy, structure, and rivalry. Moreover, the model adjusted to the condition of both countries and based on the determinant factor of FDI. There are 14 variables inside the four parts to analyse both countries competitiveness through comparing them in every variable. After comparing both of them, Indonesia has 5 out of 14 variables that stronger than Thailand. Meanwhile, Thailand has 9 out of 14 variables that stronger than Indonesia. The result shows that Thailand is more competitive compared to Indonesia. Even though Thailand has more superior variables compared to Indonesia, but they have each speciality. Indonesia is more facilitate on consumer side due to the lower price of EV meanwhile Thailand is more facilitate on production activities that will produce more EV. Therefore, both of the countries have the opportunity to get FDI in order to create EV industry in the country.
