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Library's collection Library's IT development CancelIndonesia has been a very attractive market for the foreign investors since its time of
independence due to the availability of abundant natural resources and huge potential
domestic market. Foreign direct investment has also become an important element of
Indonesia?s economic development process. However, after the Asian crisis in 1998, it
seems difficult to attract foreign investors to invest in Indonesia. Foreign investors
have been reluctant to invest in Indonesia due to concerns about political and economic
instability Moreover, the hike in the world?s oil price and other crisis cause the
investment climate to be unstable.
In this globalization era, Foreign Direct Investment (FDI) has become an important
part of economy. Countries are competing to attract more FDI since it could make
significant contributions to economic development. Moreover, FDI will also help a
country achieve sustainable economic growth. However, FDI will give better result if it
goes to certain sectors which can give most of the benefits to the country.