Am Cham US fdi study infographic
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This study analyzed data from interviews with executives from 35 U.S. companies invested in Indonesia across various sectors such as manufacturing, mining, oil and gas, and retail. It found that from 2004-2012, U.S. foreign direct investment in Indonesia totaled $65 billion and companies plan to invest another $61 billion in the next 3-5 years. This investment has contributed to the Indonesian economy and national revenues, creating over 180,000 jobs with average wages of $580 per month. However, the report also cites legal and regulatory uncertainty, insufficient infrastructure, and shortage of skilled workers as barriers to maintaining large foreign investment in Indonesia.
Am Cham US fdi study infographic
- 1. PArtnerS IN PROSPERITY: A STUDY OF US INVESTMENT IN INDONESIA This study combined verified quantitative and qualitative data including in-depth interviews with senior-level executives from 35 U.S. companies with direct investments in Indonesia. This included companies in the manufacturing, mining, oil and gas, retail and other sectors. Through its investments, US companies have and continue to play a leading role building a healthy, prosperous Indonesian economy. ABOUT THE STUDY american FDI in INDONESIa, from 2004 –2012 usd 65 bILLION planned investment next 3 to 5 years usd 61 bILLION in 2012, extraction & manufacturing industries maDe up more than 95% of total U.S. foreign investment in Indonesia. This resulted in: oil & GAS contribution to 2012 national revenues USD 17 BILLION it’s 47% of the total non-tax state revenue. contribution and impact USD 74.2 mILLION average corporate income tax paid in 2012. for a total of approximately USD 2.6 BILLION ±183.000 people directly employed at competitive salaries. average wage paid: rp 4.4 million/month USD 5.8 million average CSR program expenditures in 2012 an increase of 95% between 2007-2012 When these impacts are multiplied across the economy over the next 20 years, this will result in: US Companies plan approximately USD 61 Billion in new investment in the country over the next three to five years. IN NATIONALPRODUCTION VALUEUSD 179 BILLION IN GDPUSD 94.1 BILLION IN VARIOUS SECTORS1.19 MILLION jobs barriers to future investment While Indonesia has enjoyed robust growth in recent years, the report cites 3 key challenges to maintaining its attractiveness to continued large-scale FDI inflow. Legal and Regulatory uncertainty, abrupt changes in regulations, and gaps in implementation and enforcement Insufficient hard infrastructure, such as ports, roads, and railways, to support longer-term high economic growth A shortage of sufficiently skilled and educated workers