Research Article
Identifying Motives of Japanese Investment in Indonesia from 2010 to 2016: A Preliminary Study
@INPROCEEDINGS{10.4108/eai.24-10-2018.2289680, author={Rima Novita Sari and Asra Virgianita}, title={Identifying Motives of Japanese Investment in Indonesia from 2010 to 2016: A Preliminary Study}, proceedings={Proceedings of the 2nd International Conference on Strategic and Global Studies, ICSGS 2018, October 24-26, 2018, Central Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICSGS}, year={2019}, month={11}, keywords={japan’s investment in indonesia company investment oli theory}, doi={10.4108/eai.24-10-2018.2289680} }- Rima Novita Sari
Asra Virgianita
Year: 2019
Identifying Motives of Japanese Investment in Indonesia from 2010 to 2016: A Preliminary Study
ICSGS
EAI
DOI: 10.4108/eai.24-10-2018.2289680
Abstract
Investment helps developing countries such as Indonesia meet their developing infrastructure goals, which are a priority of the Indonesian government. Japan, which has been a major investor in Indonesia since the 1970s, needs Indonesia as a provider of raw resources and also as an industrial base. Japanese multinational companies’ investments in Asia have been successful. This study focuses on Japan’s dynamic investment in Indonesia, from 2010 to 2016. The study employs a qualitative research and using John. H. Dunning’s concept of OLI theory (ownership advantage, location advantage, and internalization advantage) to analyse the dynamics of Japanese investment in Indonesia. This study finds that motives of Japanese investment in Indonesia after 2010 were still focused on expanding market reach and having access to greater resources of Indonesia. The large base of manpower and a rising middle class are two facts that become main considerations of the Japanese investor’s in Indonesia.