Abstract

The purpose of this study to determine the policy of the Indonesian government in regulating and improving the investment climate in Indonesia. And know the condition of Foreign Direct Investment in Indonesia, especially the development of Japanese investment in Indonesia. From the five largest investors in Indonesia, namely Singapore, Japan, South Korea, China and the United States, Japan is the second largest investor country in Indonesia. Investment, especially foreign direct investment (FDI) can be one of the factors that influence in encouraging economic development of a country, especially Indonesia as a developing country in order to be able to compete for the progress of the Indonesian nation. As much as 87 percent of Japanese investment in Indonesia is realized in the manufacturing sector. The contribution of manufacturing industry sub-sector (automotive) to GDP of non-oil industry sector reached 10.47 percent or the third largest after the food and beverage industry subsector.

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