A Study On The Political Risks Of Chinese Enterprises' Direct Investment In Indonesia

Economic globalization and Regional economic integration are the significant trend in the development of world economy,Global capital flows is the feature of trans-communication.In order to integrate the development of world economy and seek for the space of economy development better,all the countries attract foreign investment and encourage native enterprises to invest in foreign by establish a series of preferential policies.2017 is the seventeenth year of China to “go abroad”,during this time,China had transformed“accept FDI”into“give FDI”and look for the potential region of investment actively.Indonesia has the largest land and biggest population in Southeast Asia,which is in a significant status.China regard Indonesia as a most of strategic cooperative partnerships.In recent years,the both speed the steps of cooperation in investment,however,the confusing and irregular international environment let Chinese enterprises meet many risks in the process of FDI,especially the political risk,which is from the result of politics.So,it is important and necessary to know the political risk does exist in Indonesia and take relative measures to avoid and ensure the profit and goal of investment that has realized.Having inspected and studied a large number of literature,I basically research into the definition,the classification,the evaluation,the management of the Indonesian political risk in the paper.On the basis of the above,introducing the situation of FDI in Indonesia and the current situation and aspect of Chinese investment in Indonesia and then discussing the political risks in the Indonesia by combining the classification and causes comes from three aspects,which is investment country host country and international society.At last,giving advises of releasing and avoiding the political risks of investment in Indonesia from the macro and micro perspective.From what has discussed above,I hope that this paper can give Chinese enterprises a constructive report about investing in Indonesia.