Abstract

Abstract Purpose – This study aims to explain current condition of investment inflow into Aceh Province of Indonesia after peace agreement between Free Aceh Movement and the Government of Indonesia was resolved. This peace agreement was achieved after both parties were involved in political conflict for three decades Methodology – This study applies qualitative methods by using descriptive approach. Data required for this study were obtained from library research by analyzing primary and secondary resources. Primary resources were collected by analyzing current literature. Secondary resources were obtained by reviewing some previous research report, government report and other institution report which are related to this study. All collected data were analyzed by using qualitative analysis. Findings – The results indicate that investment inflows into Aceh Province after a peace agreement have significantly increased. This condition is caused by better investment condition after Free Aceh Movement and the Government of Indonesia agree to seek a peaceful resolution through a peace agreement. It has been noted that political conflict in Aceh had occurred from 4th December 1976 until 15th August 2005. Prior to 15th August 2005 most investors were reluctant to invest in Aceh because unsecure conditions were rampant everywhere.Better investment inflow into Aceh after peace agreement is also motivated by the enactment of Law Number 11 of 2006 on the Governance of Aceh. By having this law the Government of Aceh has more power to manage and attract new investment to be invested in Aceh Province. This law provides more spaces for the Government of Aceh to provide adequate incentives and interesting facilities for certain sectors of investment to attract more inward FDI. Therefore, it is suggested that the Government of Aceh should maintain stable political condition to attract more investment inflows into Aceh in the future.

Highlights

  • Foreign direct investment (FDI) is one of the important elements for economic development either for developed or developing countries

  • The results indicate that investment inflows into Aceh Province after a peace agreement have significantly increased

  • It is suggested that the Government of Aceh should maintain stable political condition to attract more investment inflows into Aceh in the future

Read more

Summary

Introduction

Foreign direct investment (FDI) is one of the important elements for economic development either for developed or developing countries. It plays an important role in developing economic growth in both countries, namely the ‘home country’ (FDI provider) and ‘host country’ (FDI recipient). From the host country’s perspective, FDI is considered as a means of acquiring technologies, skills and. Published in the Emerald Reach Proceedings Series. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/ legalcode

Objectives
Findings
Discussion
Conclusion

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.