Should the state of Indonesia to bring foreign investors for industrial development in Indonesia.
The presence of foreign direct investment (FDI) in our country is not something new for the state and people of Indonesia. PMA was the star in our country's development partners while speeding on the level of acceleration of economic growth above 7% per year before the economic crisis occurred. Together with the investment community and domestic investment, overall investment has grown on average about 10,% per annum in the period 1991-1996 with a contribution of almost 30% of Gross Domestic Product. Foreign investment activities that can be developed and potentially generate foreign exchange and the largest multiplier effect can be characterized as follows: 1. Activities of export-oriented agricultural industry 2. Manufacturing activities and supply industries that use more labor and local raw materials 3. Activities intermediate and high-tech industries that utilize its skilled and professional workers 4. Activities of fish and shrimp ponds, industrial canning and processing industry of agricultural and fishery goods 5. Activities electronics industry, computers and medical equipment products and pharmaceuticals 6. Activities forest product processing industry, household furniture industry using electricity. clothing industry, and handicraft industry 7. Activities of industrial machinery and factory equipment supply 8. Shipyard industry activities as well as automotive production, etc.. State of Indonesia needs to bring in foreign investment for industrial development in Indonesia. Meanwhile, foreign investment activities are expected to provide less impact and influence on the progress of economic growth because it tends to give relatively small multiplier effect, among others, consist of: 1. High-tech heavy industrial activity, mostly raw materials and imported labor 2. Trade activities and large-scale retail businesses such as area malls, hypermarkets and agency selling imported goods 3. Car body of a car industry activity 4. Banking and insurance activities 5. The operations of mining 6. fishing activities with modern equipment 7. Footloose industrial activities such as footwear, beverage, packaging, etc. representative offices.
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