THE CORRELATION BETWEEN JAPANESE AUTOMOTIVE MANUFACTURING INDUSTRY AS FOREIGN DIRECT INVESTMENT AND INDONESIA FOREIGN INVESTMENT POLICY (2014-2019)

Abstract

Japanese Government has been cooperating with Indonesia government to develop the economic relations through several partnership. With the established cooperation between the country, Japanese automotive manufacturing industry has able to increase its influence in Indonesia through Foreign Direct Investment (FDI). Therefore, with Japanese Automotive Manufacturing FDI’s impact investment coming to Indonesia, the government of Indonesia start to pay attention to the problem identified by Japanese investors which considered as the barrier to invest in Indonesia and as the demand to create better investment environment. The government of Indonesia will start to revamp several foreign investment policy to satisfy and attract FDI in accordance to problem identified by foreign investors. The establishment of 16 economic stimulus packages which compiled in President Regulation (Perpres) No 2 Tahun 2018 (Kebijakan Industri Nasional Tahun 2015-2019) has become the platform for Indonesia government to further create better investment environment for foreign investors. Through the understanding on the history of Japanese automotive manufacturing in Indonesia and both parties interdependence. This thesis will analyze the importance of Japanese FDI especially automotive manufacturing industy which has become the rationale for the goernment of Indonesia to address the issues which has been identified.