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| Foreign Investment and Its Impact on Republic of Indonesia |
Foreign Investment and Its Impact on Republic of Indonesia
There’s a lot of factors to be considered when starting a company. Those factors that makes the company superior is not only from the people within, but from the preparation like funding and other things itself. Funding become one of the most essential needs when it come to starting a company. The way company works depends heavily on funding. There’s also investment, a load type of investment, there’s no way a company founder doesn’t know what investment is. Read below for more information on
One of investment is Foreign Investment. Not a lot of local company accept or did a Foreign Investment. But what exactly is Foreign Investment?
Foreign Investment is an investment activity carried out by foreign investors aims to build business in Republic of Indonesia. Investments can use foreign fund entirely or joined with domestic fund.
According to Pasal 1 Angka 3 Undang-Undang No. 25 Tahun 2007 about Foreign Investment, Foreign Investment is an investment activity to conduct business in the territory of the Republic of Indonesia carried out by foreign investors, both those who use foreign fund wholly and those who jointly with domestic investors.
Foreign Investment is owned by foreign countries, individual foreigners, foreign business entities and legal entities, and/or Indonesian legal entities whose capital is partly or wholly owned by foreign parties.
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| Foreign Investment and Its Impact on Republic of Indonesia |
But what are the benefits of Foreign Investment itself? One of them is the entry of new fund to help various underfunded sectors. This foreign investment also opens up a lot of new job opportunities to reduce unemployment rate. Apart from having positive benefits, of course every activity has its negatives. Does Foreign Investment have a negative impact on the country or company? The negative influence of foreign investors on community development in Indonesia is the neglect of the agricultural sector, environmental damage, reduced productive land, excessive exploration of natural resources and more business results are brought to the country of origin.
Foreign Investment and Its Impact on Republic of Indonesia, that’s about it. And before company accept foreign investment, as a local company owner, you need to pay attention to procedures and be careful in accepting foreign funds. Because all things must be considered for the longevity of the company. Don’t forget to check another articles by Litologi Solution, see ya!
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