5 Three Basic Wisdoms to Attract Foreign Direct Investment: An Indonesian Experience

Abstract

When Indonesia embarked on a more rational attempt to develop its economy at the end of the 1960s, it began by enhancing private sector involvement, including inviting foreign direct investment (FDI). It goes without saying that investment policy should be accompanied by a series of policy reforms and a good development strategy to ensure the success of development program implementation. High priority should be given to encouraging international participation in the development process. The core of a good development strategy is to combine the country’s commitment in three areas; namely, to provide suitable legal backup to investors, to keep the economy on a stable growth track, and to follow a development strategy to adjust domestic conditions to international investors.