Foreign Investment and Its Impact on Republic of Indonesia

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Foreign Investment and Its Impact on Republic of Indonesia
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 companyThose factors that makes the company superior is not only from the people withinbut from the preparation like funding and other things itselfFunding become one of the most essential needs when it come to starting a companyThe way company works depends heavily on fundingThere’s also investmenta load type of investmentthere’s no way a company founder doesn’t know what investment is. Read below for more information on Foreign Investment. Don't forget to read another articles by jasapengurusan.web.id for more related topic.

One of investment is Foreign InvestmentNot a lot of local company accept or did a Foreign InvestmentBut what exactly is Foreign Investment?

Foreign Investment is an investment activity carried out by foreign investors aims to build business in Republic of IndonesiaInvestments can use foreign fund entirely or joined with domestic fund. 

According to Pasal 1 Angka 3 Undang-Undang No. 25 Tahun 2007 about Foreign InvestmentForeign Investment is an investment activity to conduct business in the territory of the Republic of Indonesia carried out by foreign investorsboth 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.

Foreign Investment and Its Impact on Republic of Indonesia
Foreign Investment and Its Impact on Republic of Indonesia

But what are the benefits of 
Foreign Investment itselfOne of them is the entry of new fund to help various underfunded sectorsThis 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 negativesDoes Foreign Investment have a negative impact on the country or companyThe negative influence of foreign investors on community development in Indonesia is the neglect of the agricultural sector, environmental damage, reduced productive landexcessive 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 fundsBecause 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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