THE CONTRIBUTION OF JAPAN FOREIGN DIRECT INVESTMENT ON INDONESIA ECONOMY DEVELOPMENT : A STUDY ON JAPANINDONESIAN STRATEGIC PARTNERSHIP (20152017)

Abstract

This research objectives are to describe analytically and thoroughly about Japan Foreign Direct Investment (FDI) on Indonesia Economy development between 2015 until 2017 and to know the benefits between Japan and Indonesia Strategic Partnership that last from 28th November 2006 until now. As long as this Strategic Partnership, Japan and Indonesia was also made Japan Economic Partnership Agreement (IJEPA) on 20th August 2007. As we know there are two theories about Foreign Direct Investment (FDI). The first theory said that Foreign Direct Investment (FDI) have risk to destroy the natural resources of the destination country , unhelpful for the destination country economic and also have chance to destroy local capabilities. The second theories claim that besides the negatives effects from Foreign Direct Investment (FDI), there are many benefits in Foreign Direct Investment (FDI). This research is important to prove that Foreign Direct Investment (FDI) have many benefits for country that are investment destinations, especially developing country like Indonesia. In the other hand, this research was focused on the benefits of Japan Foreign Direct Investment (FDI) for Indonesia economy. Because Japan is one of the major country that have many Foreign Direct Investment (FDI) in Indonesia.