The Research On Japan's FDI In Indonesia After World War ?

Japan's FDI in Indonesia has experienced a long and tortuous process after World War II.This paper divides the process into six stages:the preparation period(1945-1966),the expansion period(1967-1973),the relative stagnation period(1973-1984),another expansion period(1985-1996),the adjustment period(1997-2006),and a new round of expansion period(2007-2017.06).Nowadays,Japan's FDI in Indonesia is in a new round of expansion period.There are roughly four characteristics in Japan's FDI in Indonesia:Firstly,in the mode of entrance,most of Japanese MNCs adopts the joint ventures in early years.With the improvement of Indonesian FDI policy,in addition to joint ventures,more and more Japanese MNCs chooses the entry mode of sole proprietorship.Secondly,in the main body of investment,Sogo Shosha is the main body investing in indonesia in the early time.Japanese SMEs have gradually entered the Indonesia's market with the help of Sogo Shosha,which makes up for some of the primary industries that large enterprise groups can not engage in.Thirdly,in the objective of investment,Japanese investment objectives in Indonesia has changed a lot with the changes in the domestic and international environment.The evolution of goal is from the resource,cost,market to the construction of a regional production network.Fourthly,in the structure of investment,Japan's FDI mainly concentrates in Indonesia's agriculture,mining industry,and especially the petroleum industry.Later Indonesia's manufacturing industry becomes the key point of Japan's long-term investment.In recent years,Japanese FDI has gradually transferred into Indonesia's tertiary industries,such as real estate,finance and insurance,and e-commerce,and the investment structure has become increasingly diversified.After World War ?,Japan's FDI in Indonesia has made various achievements,which are mainly reflected in the following respects.Firstly,the investment in Indonesia's agriculture and mine has enabled Japan to obtain a stable energy supply such as oil,natural gas,wood,rubber to a certain extent.Secondly,Indonesia provides a broad market for the export of Japanese industrial products.Thirdly,Japan's FDI not only deeply cultivates the local market,but also dominates the economic development of Southeast Asia with the "Wild goose pattern",which brings the Southeast Asian countries into its production chain of JMNCs and constructs the regional production network dominated by Japan.Fourthly,from the FDI in Indonesia,Japan has won the trust and goodwill of the Indonesian people by practicing CSR or some other ways,and subsequently Japan's national and corporate image have been promoted.The effectiveness that Japan has made from the FDI in Indonesia can be explained from two aspects.On the one hand,the Japanese government severs as a guide,a regulator or a server in the FDI.It can not only timely adjust Japan's foreign investment strategy,and maintain the competitive advantage of national industries all the time,but also continuously improvess Japan's foreign investment insurance system and service agencies,which have solved the worries of Japanese MNCs investing overseas.On the other hand,in the enterprise level,Japanese MNCs can implement localization strategy according to the local conditions,attach importance to mutually beneficial cooperation with host countries,actively undertake corporate social responsibility and pay attention to the division of labor and solidarity and mutual assistance among enterprises.These factors are the keys to the success of Japanese MNCs.