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A country always wants a constant and high quality growth in economy so that its people will prosper. Economic growth requires improvement in productivity which could be accomplished by using the output approach. This approach is done by increasing Gross Domestic Product through the increase of capital inflow to be invested. Primarily, the source of investment comes from the national savings. However, if insufficient, capital can be collected from foreign investors in the from of foreign direct investment (FDI), Recently, the 2008-2009 global economic crisis faced by almost all countries throughout the world has brought a negative impact on the global FDI trend. Looking at recovery signals of this crisis, Indonesia should take advantage of this momentum by eliminating its weaknesses and limiting external impediments which could negatively impact the process of attracting FDI. This article aims to analyze steps that need to be taken by the Indonesian government in order to increase the FDI inflows to Indonesia after the 2008-2009 global financial crisis. |
