2006 FDI

Jan 26th, 2007, in Business & Economy, by

Foreign investment inflows fell 33% in 2006.

According to the Foreign Investment Coordinating Board (BKPM) realised foreign investment (FDI) inflow for January-December 2006 fell to 5.9 billion dollars, a fall of 32.9% from the figure of 8.9 billion dollars in 2005. The number of approved foreign investment projects also fell, from 900 to 867.

Realised domestic investment levels saw a similar decline, falling 32.2% in 2006. The 2005 figure of 30.6 trillion rupiah fell to 20.8. The number of projects embarked upon also fell by 24%, from 214 projects in 2005 to 164 in 2006. antara

However numbers of people employed in foreign funded investment projects rose from 156,109 in 2005 to 206,945 men and women in 2006. Those employed by locally funded projects fell in number from 122,750 in 2005 to only 79,415 in 2006.

FDI approvals however increased by 15% year on year, up to $15.6 billion, while approvals for local investment sharply rose by 221% from 50 trillion rupiah in 2005 to 162 trillion in 2006. antara

Coordinating minister for the economy, Boediono, doubted whether investment levels had actually fallen in 2006. He said that BKPM statistics were not to be relied on given that they only included investments that went through BKPM channels. He said there was much investment that was not recorded by the BKPM. detik

51 Comments on “2006 FDI”

  1. Anna says:


    I do not blaming on the country, but the people, they are lazy! They want to get pay but they don’t want to work for it. I understand they just want to make a living and so are we. I am hard worker, I’ll do the best I can to improve the company. So they can get a better life, with good wage, look if they happy and so am I. But they don’t understand that, all they want just money, without to do anything, well then I’m broke! And a tip? Islam teach us about tip? We are not selfish, this people are. Islam teaches us to be responsible for ourselves and not to depend or ask from others.
    Then tell me why some Indonesian are just taking and taking?
    I don’t think islam teach you that. And again this discussion is not about religion, or islam for that matter.

  2. Dimp says:

    Hi Anna,

    Well, thank you finally there is someone who have common sense in this world, basically that’s first thing we need. If people have all the high education but have no common sense is useless.

    This dude, ono brothers, he seems so educated but yet he is so ignorant, he wants the country to be “maju” but he always thinking backward. We need to look what we going to do for the future, by learning from others, learning from the mistake the country has made, not by blaming each others, and I agree what you said.
    And with this Radical Group who always against some of the method to make Indonesia “maju” I don’t think that’s going to work.

    That is unfortunately seems to be the mentality of most Indonesians, they keep looking backward, still blaming the VOC, the Japanese, or anyone that they can point their fingers at. We are far behind Malaysia, being taken over by Vietnam, don’t even dare comparing to China or India. The main difference is that the people in those countries think for the future, not for the past that they could not change. While Indonesians are busy dreaming about their past, others are building for the next generations.

  3. Junko says:

    The Indo man. How do you tackle the NGO and Policeman when they come to your factory, making trouble and ask for bribe? How do you treat your worker if they steal from your factory and the policemen do not care? Give us a wise answer as you claimed yourself so educated and intellectual.

    I want see a wise man for a wise solution for all the situation faced by manufacturer.

    Please be reminded that you should focus on one arguement and one scenario. I am talking about the manufacturer who really bring jobs. I am not talking about the resouces exploiting company who just take resources.

    Show us your wisdom by giving a practical solution!!!!

  4. Achmad Sudarsono says:

    Mr Junko,

    Thanks. I wonder if you can tell us if you are from another country ? Junko sounds Japanese ?


    To make manufacturing better, I recommend you:

    1. Are fair to your workers. Don’t exploit them. And pay the decent wage.

    2. Don’t be accusing the pejabat of corruption all the time. Understand that they have a hard life as well – how are they supposed to live if the rich don’t help them ?

    3. Remember that the foreign investor has a bad history here. They have alot of ‘utang budi’ or debt of honor with the Indonesian people because of the VOC and multinational make a partnership with Suharto. It is fair that they have to pay a little extra.

    4. Finally, be a good manager. Use good management strategy, do proper business plan, market entry study for where you export to (if you are export). What about SWOT analysis (strength, weakenss, opportunity, threat) ?

    I suspect that alot of this blame the union, police, pejabat, is just to hide weaknesses as a businessman or woman. You didn’t hear the Laskar Rakyat in the Independence War complain about only having bamboo spears; this is the spirit that Indonesia was built on.

    Not everyone can keep up with Indonesians because we are tought and hard-working.

    That is my comment, friend. I hope it is useful. Just trying to help you – and us.


  5. Tomaculum says:

    Anna and Junko,
    why taking A. Sumbarkono or who ever he is earnestly? Read his comments (here and in other blogs) carefully, then you will understand what I mean. 🙂

  6. Junko says:

    The Indo man do not really answer the question.

    He does not have any experience of doing business and run a factory. Moreover, he pretends to be so kind by his “big mouth”. He has money but do not support the poor. I am sure that he never help the poor since his word is too generous to be true.

    I have paid more salary than the local manufacturer.

    If anybody employ him, he will expect tips, tips and tips since he does not know how much he should earn. Salary is salary. If you do not agree the salary, just don’t take the employment. However, you have a mentality that you get salary today but you will force tips and make the employee and employer relationship worsen. Furthermore, I am sure you are the guy inviting policeman to see your boss since your boss do not give tips.

    You will not be a loyal employee since you think there must be tips for making you happy.

    You can only be a parasite of your family resources. You can never be a boss.


    Indo man, if you want to work for any foreigner. Show us your skill. We all have given you the practical question. You should answer us how you solve the problem.

    Remember, how “YOU” solve the problem. Only a profitable business give you bonus. No tips. OK? And the question we brings are the reason make the business loss money. Do you understand? We want to work in a clean business with no interfere from Policeman and NGO who does not work at all.

    IS your Muslim god say you can have rice with no work? If yes, why do your country need FDI? Just Muslim temple and pray, pray, pary. Rice will fall from sky!

    Ask your cousin to pray. You do not need to recommend to us for his employment. If god do not give you rice, bring an NGO to negotiate with your Muslim god. OK?

  7. Achmad Sudarsono says:

    Mr, Junko,

    Thank for your comment.

    Once again, I think you should improve your management skill and not go blame NGO, official and worker.

    Business is built on hard work, sound strategy, a good product and good management. Not on complaint.

    I recommend you read some basic introduction to business (manufacturing for dummies, not saying you are a dummy, but there are some good books like this), then you can implement the idea.

    I can give you some more advices, but I recommend you to use my professional services; I can’t give away my advice for free.

    Anway, I’m not sure what the ‘problem’ is ? If you don’t break the law, why would the policeman come ? If you don’t do a bad thing, why would the NGO come ? Friend, just do a good thing and everything will be ok.

    Don’t listen to Pak Tomalcum. He cooked his brain by smoking too many kretek.

    Thank You Friend.

  8. Junko says:

    If your level of understanding on management is based on book for dummy, you are real shameful to recommend anything on management. Not to say for claiming professional fee. To be frank, my manager is a business graduate. He must study more than you.

    Do you know, to work in Indonesia with the identity of foreigner is an offence in law even though you have got all the permission?

    You have shown all your weakness already. I do not want to listen to your rubbish. You read since you want to argue but not to improve.

    Well, this is Indonesian. To be educated is to argue, and get money without work.

    God bless you. Rice will fly from the sky. Pray more in Mosque! OK?

  9. Tomaculum says:


    Well, this is Indonesian. To be educated is to argue, and get money without work.

    sorry, but you’re now unfair.
    Don’t you realise, that A. Sumberolo or who ever he is always try to provoke us? And you are hoodwinked and let yourself provoked to write such unfair comments.
    He is just trying to imitate Borat (you know this figure?). But a pity, that he can not reach the quality of this Borat.

  10. Junko says:

    Dear Mr. To,

    I am afraid I don’t know Borat. I just feel so pitiful that A. Su is a group of Indonesia so unstable. They are educated and being spoiled by their parent. They do not really help their poor people but just push all the blame to somebody different from him.

    Did you see any Muslim charity group in Indonesia? Why don’t they have any mercy to their people?

    Also, I am very surprised he relied on those book for dummy and claim to be professional. How long the path to be a professional and a proper scientist?

    Anyway, we work hard and enjoy the result. See! I come from common family with no parent support. However, through my diligence, I can go to Japan 5 times a year, and Europe 3 times a year. I have no religious but I help people. I can feel their pain and need. I will help. Why do we need so many excuse? How can a person be so lazy for all day and feel no shame?

    I would say. Let us develop a better community and blog here for exchanging real knowledge. I do not want to waste time on that Indo guy. I have to take care of those people around me, the buyers, the agents, my workers. I am a screw of the whole machine. I am small but important the smooth operation of the whole process. I have responsibility but I enjoy it.

  11. Tomaculum says:


    Did you see any Muslim charity group in Indonesia? Why don’t they have any mercy to their people?

    Indeed I know some Muslim charity groups in Indonesia, but they yell not so loud as the other Muslim groups, so they are not so “well known”. And I know personally some Muslims do charity deeds without announce it.
    You see, I work also very hard to earn my money and I have frequently feel this enviousness to my wealth which is sometimes degenerating to hate. Most of them are slacker. But I know also hard working people, rich and poor. They don’t have time to hate. Some of them give their few “richness” to those who needs help.

    Let me say again, don’t let yourself being provoked by A. Sumberolo or who ever he is.

    Btw: Borat is a figure in a provocative film: http://en.wikipedia.org/wiki/Borat.
    You will see, that A. Sumberolo doesn’t have the quality of this Borat (Sacha Baron Cohen), even though it is a “negative” quality. Poor man, this A. Sumberolo or who ever he is.

  12. Achmad Sudarsono says:

    Hey Folks,

    I’m just Achmad, not Borat. And I could only ever dream to reach the pinnacles of Sacha Baron Cohen’s achievement but

    1) I don’t have a T.V. show and

    2) it’s just too easy to make Indonesians think someone is stupid as you’ve all proven.

    Junko: Red Crescent, Muhammadiyah’s hospitals. Some Muslim charities for you.

    But overall, yes, Friends, I have just been trying to provoke you all along and it’s been a hell of a lot of fun. I owe you all for a lot of therapeutic laughter.

    I still just can’t believe you fell for any of that ‘pancasila’, ‘bumn’ or any of that other sh*t.

    It honestly would have been much better from the get-go to ignore the moronic comments and not give the idiot who wrote them even a second of your time.

    But we’ve all had our fun, so I take off my hat.

    to Dimp, Grace and Mercy, Tomalcum, Ihaknt, Junko, Anna, and above all the hard working Patung,

    You’ve all been very good sports, but it’s now high time to move on.

    Achmad Sudarsono
    Increase Da Peace
    Sava Da Flava.
    Maximum Respect.

  13. Junko says:

    Dear Mr. To,

    Are you a businessman? I would be glad to exchange more idea on how to help the poor and how to erase the parasite in Indonesia during business process. From now on, I will not write anything for A. Sudarsono. It will be your bitter job to teach him, your grandson.

  14. Tomaculum says:

    I’m not a businessman, I work in the health sector.
    But I know that it is an almost hopeless strugle to be a good businessman in Indonesia. I mean good in the business and good as a person. You won’t have any change to avoid to “meet” those parasites, because they crouch everywhere, even “on the roof”.
    If you want to do something for the poor, give them a job. My spiritual teacher told me once: “If you want to be a businessman, don’t forget this: Better you get Rp. 100, – less profit but win 100 friends.”
    I don’t know, if his words are good, because I haven’t try it. But it sounds good.

  15. Junko says:

    Dear Mr. To,

    I always admire and respect those person fight for the health of the human being. Right now, bird flu is razing in S.E. Asia. Take great care please.

    I would apologise about the comments that you feel unfair. In fact, I would point out only those whose first degree is from Business studies.

    I would say that as my background is technical side and a second degree on Management. I feel very upset that somebody who study on book for dummy can claim anything. Also, I have a group of friends who are scientist on food technology and LCD (flat panel TV). Whenever I visit them in their laboratory, I feel so impressed with the world not visible outside their laboratory. I would say true effort will bring fruitful result. That’s why I hate somebody who never do something seriously and criticise the other to raise his position. Unfortunately, only the hero knows the hero. Only the hero respect the hero.

    Anyway, thank you for your sharing.

  16. Junko says:

    Dear participants,

    Can anybody describe whether the port facility in Bitung, North Sulawesi? Is there any international shipping line there? Can anybody describe whether Manado-Bitung is a safe place?


  17. Achmad Sudarsono says:


    In general, it’s quite dangerous in terms of sea-piracy. There are a lot of attacks up there. Many go unreported and a lot of the time there’s cooperation from port authorities, navy, and maritime police.

    It’s true that piracy has fallen to its lowest level in years last year in 2006 in Indonesian waters. But that was mostly due to patrols in the Malacca Strait. There’s been little change in the rest of Indonesia.

    Most piracy attacks fall into two categories:

    1) Sea muggings – usually poor fisherman using machetes looking for spare change.
    2) Syndicate attacks – aimed at stealing whole ships and their cargoes, usually with participation from gangs elsewhere in Asia, increasingly for re-sale in China’s giant and unregulated ports.

    Currently, the easiest targets for professional pirates are generic cargos of commodities; palm oil, copra, tin, etc. Tug-and-barge theft is the easiest. Steal the cargo and if they have an international network, steal the tug-and-barge as well.

    Noel Choong of the International Piracy Reporting Center – his contact details are online – can give you more information.

    I haven’t heard of any specifics in Bitung Manado. But there’s alot of historical piracy up there. All around the world, piracy tends to flourish in spots it has for hundreds of years. It’s passed down through families.

    It’s not a good idea to trust local papers either. A lot of the time the pirate ‘kings’ are local businessman who bribe local journalists to shut the f–k up. The journalists don’t want to give up the perks of the job either; nice h.p., cars etc.

    The best guy in Asia to talk to is Noel Choong. He’s pretty accessible and won’t bullsh*t, but sometimes is a bit reluctant to talk over the phone.

  18. Anna says:



    I do not think he have any experience in the manufacturing business. He has no idea how to deal with the people, government employee, and so on, there is a bigger problem than what you think, about running a company my friend, and you need to realize that.
    Not just paying, sign in, etc, it’s more than that.
    We still have to think where we can found good customer, where to go to etc, so it’s not that simple as you think.
    So does not really matter what is he says or comments he would not understand.
    But thank you.

  19. ryheen says:

    I’m as Indonesian i will say MOST of Indonesian rules are Radicolous, Stupid.. that’s why Indonesia like 21Century behind FAR>>FAR>>FAR… Indonesia will never better if Government doesn’t change their rules…

  20. Dear Anna and Achmad,

    Your arguments on the declining trend of foreign investment in Indonesia appear to simplify the real situations.

    The facts that foreign investors are not interested in the country came from various factors, not just because of the emerging prospects in neighboring countries such as Thailand, Vietnam, China, and others, or because of Indonesian legal uncertainty, as you suggested. It is a lot of more than those!


  21. Janma says:

    Bitung manado is fine…..
    I used to ship knockdown houses from there all the time, I havent’ for a while now, but I know it’s safe and there are international shipping companies there.

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