Chinese Foreign Direct Investment in Indonesia: Trends, Drivers and Impacts

Peter Gammeltoft, Lepi T. Tarmidi

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    In Indonesia, no systematic study of Chinese FDI has been undertaken to date. This paper contributes to filling this research gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia, relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with key informant interviews, available official statistics and secondary data. Considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in, e.g., extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance, etc. Where the local development effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalisation, are likely to give rise to a more modest extent of positive spillovers than investors from more economically advanced countries.

    In Indonesia, no systematic study of Chinese FDI has been undertaken to date. This paper contributes to filling this research gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia, relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with key informant interviews, available official statistics and secondary data. Considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in, e.g., extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance, etc. Where the local development effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalisation, are likely to give rise to a more modest extent of positive spillovers than investors from more economically advanced countries.

    LanguageEnglish
    JournalInternational Journal of Technological Learning, Innovation and Development
    Volume6
    Issue number1-2
    Pages136-160
    ISSN1753-1942
    StatePublished - 2013

    Bibliographical note

    CBS Library does not have access to the material

    Keywords

      Cite this

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      title = "Chinese Foreign Direct Investment in Indonesia: Trends, Drivers and Impacts",
      abstract = "In Indonesia, no systematic study of Chinese FDI has been undertaken to date. This paper contributes to filling this research gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia, relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with key informant interviews, available official statistics and secondary data. Considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in, e.g., extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance, etc. Where the local development effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalisation, are likely to give rise to a more modest extent of positive spillovers than investors from more economically advanced countries.",
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      Chinese Foreign Direct Investment in Indonesia : Trends, Drivers and Impacts . / Gammeltoft, Peter; Tarmidi , Lepi T. .

      In: International Journal of Technological Learning, Innovation and Development, Vol. 6, No. 1-2, 2013, p. 136-160.

      Research output: Contribution to journalJournal articleResearchpeer-review

      TY - JOUR

      T1 - Chinese Foreign Direct Investment in Indonesia

      T2 - International Journal of Technological Learning, Innovation and Development

      AU - Gammeltoft,Peter

      AU - Tarmidi ,Lepi T.

      N1 - CBS Library does not have access to the material

      PY - 2013

      Y1 - 2013

      N2 - In Indonesia, no systematic study of Chinese FDI has been undertaken to date. This paper contributes to filling this research gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia, relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with key informant interviews, available official statistics and secondary data. Considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in, e.g., extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance, etc. Where the local development effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalisation, are likely to give rise to a more modest extent of positive spillovers than investors from more economically advanced countries.

      AB - In Indonesia, no systematic study of Chinese FDI has been undertaken to date. This paper contributes to filling this research gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia, relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with key informant interviews, available official statistics and secondary data. Considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in, e.g., extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance, etc. Where the local development effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalisation, are likely to give rise to a more modest extent of positive spillovers than investors from more economically advanced countries.

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      KW - Foreign Direct Investment

      KW - Emerging multinationals

      KW - OFDI

      KW - MNCs

      KW - Multinational corporations

      KW - Economic development

      KW - Technology transfer

      KW - Chinese FDI

      KW - China

      KW - Indonesia

      KW - internationalisation

      KW - Spillovers

      M3 - Journal article

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      SP - 136

      EP - 160

      JO - International Journal of Technological Learning, Innovation and Development

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