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25 Aug 2020
Foreign Direct Investment in Indonesia's Agriculture
Project leader: Ms. Felippa Amanta
Level of education and university: Master, Australian National University
Collaborating Organisations: -
Project Location: DKI Jakarta; Australia
Activity Type: Academic research and research-related activities
Sector: Trade, Economics
Project Rationale:
Indonesian President Joko Widodo made the increase of foreign and domestic investment a top priority for his second term in office (2019-2024). Besides the improvement of domestic investment conditions, Indonesia is actively pursuing economic partnerships with individual countries like Australia and with regional free trade zones like the EU. There is progress in creating the Regional Comprehensive Economic Partnership (RCEP) and the Indonesia - Australia Comprehensive Economic Partnership Agreement, which was signed in March 2019. These are signals that Indonesia is becoming more open to trade and to integrate into the global economy.
Much attention is given to investments in the industrial and education sectors, in finance and e-commerce. Despite its importance for the Indonesian economy, however, there is relatively little discussion about factors that facilitate or stifle FDI in Indonesian agriculture. A thorough understanding of these factors is necessary to inform policy decisions that can effectively support rural economic development and sustainable agriculture, while addressing the growing urban-rural divide, as well as the development of oversized and unmanageable cities due to the migration of farmworkers to urban areas.
Project Beneficiaries:
Indonesia and Indonesia Government
Priority Development Area:
Economic institutions and infrastructure
Link with Australian organisation:
Bisnis Asia
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