Research On The Performance Of Conch Cement’s Direct Investment In Indonesia Under The "One Belt One Road" Initiative

Since the Chinese government put forward the “Belt and Road”initiative,China’s direct increase in the countries and regions of the “Belt and Road” initiative has continued.Indonesia has a broad market prospect due to its huge population base,unique geographical conditions and abundant natural resources,etc.Advantages have become a strategic fulcrum country along the "Maritime Silk Road".More and more Chinese companies have begun to invest in Indonesia.However,due to the constraints of capital,scale,technology,and experience,many Chinese companies have not invested in Indonesia.Not very successful.Conch Cement takes the Indonesian market as the beginning of its globalization strategy,and has accumulated valuable experience for its subsequent overseas market expansion.Therefore,this article takes the event of Conch Cement’s direct investment in Indonesia as the research object and analyzes this overseas direct investment.The performance and scientific policy recommendations are of great significance to my country’s cement industry companies and all Chinese companies investing in Indonesia.On the basis of a summary of relevant theories,firstly,the Indonesian investment environment and the status of China’s direct investment in Indonesia are sorted out.Secondly,combined with the case of Conch Cement’s investment in Indonesia,the investment history and investment motivations of Conch Cement in Indonesia are introduced.Using the financial indicator method and event analysis method again to evaluate the long-term financial performance and short-term market performance of Conch Cement,it was found that Conch Cement’s direct investment in Indonesia improved the company’s financial performance,but had a negative impact on the short-term market performance.Finally,some specific opinions are put forward on the foreign direct investment of Chinese enterprises,mainly including: For enterprises,it is necessary to shape the world brand;strengthen the training of management talents and scientific research personnel in the host country;insist on foreign direct investment to open up overseas markets.On the government side,improve the laws and regulations for overseas investment by enterprises;improve the insurance mechanism for overseas investment;and further promote the use of the renminbi in Indonesia.