Research on the Impact of Direct Investment from China on Indonesian Economic Development开题报告

1. 研究目的与意义（文献综述包含参考文献）

Economic development is very essentials to a country. Economic development is a continuous change for the better in a country's economy. And as many studies say, FDI (Foreign Direct Investment) has been playing an important role and can not be separated from developing countries economic development. This can also be seen by how the government is so aggressive in seeking foreign investors. The government also provides conveniences to investors, such as convenience in business permits and other guarantees, such as guarantees on the availability of energy, raw materials, etc. Investment can provide many benefits, such as job creation, increasing per capita income, reducing poverty, increasing living standards, and increasing GDP. According to Indonesian Investment Coordination Board (BKPM) in 2020, Chinas contribution in Indonesia is getting higher and more real. When it comes to foreign direct investment (FDI) from January to September 2021, China ranks third with a value of 2.3 billion US dollars, trailing Hong Kong Special Administrative Region of China, which is worth 3.1 billion US dollars, and Singapore, which is worth 7.3 billion US dollars. If we look at the trend, the value of Chinese investment has increased since 2018. The value of Chinese investment was recorded at US $2.4 billion in 2018, then rose to the second position with a value of US $4.7 billion in 2019, and returned to third place during the pandemic in Indonesia, even though they had increased their investment to US $4.8 billion in 2020. Thus, analyzing and examining the importance on direct investment from China to Indonesias economic development is very essential. This is a quantitative research, which is an empirical research where the data can be calculated or in the form of numbers.Research backgroundPrevious related researches are as follows:John F. Copper (2016) state on his book that does not focus on the economic aspects of China's foreign aid nor does it explain China's decision-making process to expand foreign aid or make investment decisions abroad. However, this book explains that aid and investment are tools of China's policy to make China a world power. China's investment itself is very active in the Asian region, which is grouped into three sub-areas, namely Southeast Asia, South Asia, and Northeast and Central Asia. Especially in the Southeast Asia region, China's investment and foreign aid are very high compared to other regions. Gammeltoft and Tarmidi (2011) analyzed Chinese investment in Indonesia, which grew rapidly to become the tenth largest investor in 2008. Chinese investors have a strong interest in investing in Indonesia as a market. This is different from Chinese investments in other countries, which are based on finding resources. Tarmidi (2003) conducted an analysis of a modest range of enterprises in the motorcycle and electronics industries that engaged with Chinese partners. By highlighting specific Chinese investment companies, it shows that more and more Chinese investors are getting involved in Indonesia, not just in resource extraction but also in making things. According to Siwi (2013), statistics from 2006 to 2010 indicate that Indonesia and China's free trade agreement (bilateral free trade) on ACFTA resulted in a favorable trade relationship. Where the amount of Indonesian exports and imports continues to grow year after year. The increasing trade relations between Indonesia and China, especially since the existence of ACFTA, have made China one of Indonesia's key major trading partners in past years. The Chinese market, which is the largest and widest market in the world, is a distinct advantage for Indonesia itself, in terms of exports and imports. Further research by Marisa and Masaru (2021) discovers a favorable correlation between certain FDI in specific industries and IIT (Intra-Industry Trade). In the bilateral relationship between Indonesia and China, FDI is specialized in labor-intensive and resource-intensive industries, as well as technology-intensive industries. These industries include food, paper, paper-based items, and printing, as well as the chemical and pharmaceutical sectors, as well as metals, but excluding machinery and equipment.Other study was conducted by Juwita, Wang, Iskandar, Supryadi, and Sukma (2020) with quantitative research method, which the data was proceed by statistical calculation. It shows that Chinese FDI has had a greater favorable influence on Indonesia, particularly in terms of encouraging the development of the country's infrastructure. However, Badaruddin and Octavia (2017) argues that foreign investment from China to Indonesia has given rise to various political, economic, and social dynamics. Investments from China, which were originally expected to increase the economic development of a country, turned out to have a domino effect on economic, political, and social dynamics. In more detail, it can be seen from the controversy over government policies that seem to lack sovereignty when dealing with interests that enter through Chinese investment. Socially, the impact can also be seen in the increasing number of workers from China who enter the country by working on manufacturing and infrastructure projects owned by Chinese investors. The influx of unskilled workers from China has caused problems because they seize jobs from local workers.There are very limited studies that portraying the impact of Chinese FDI on Indoensias economic growth. So far, we have found some studies which one of them was made by Nawiyah and Puar (2020) using a quantitative descriptive method with linear regression analysis techniques, to determine the effect between Chinese direct investment and Indonesia's economic growth. and the results show that there is a positive and significant influence between Chinese FDI to Indonesia on national economic growth. The GDP per capita of an Indonesian province has a favorable influence on Chinese FDI. According to the study, the economic development rate regression coefficient for Chinese FDI suggests an increase in the number of projects per capita within each regional GDP. This also applies to the number of investments, and each industry has seen a growth in investment initiatives. This declaration reaffirms the influence of Chinese FDI in Indonesia, which favors the Indonesian side on a regional level. (Fu et al, 2018).References[1] Tarmidi, L. (2003). The growing importance of China and machinery-related Industry of Indonesia. Ohara, M. (Ed.): The Growing Importance of China and the Asian Machinery-related Industries. Institute of Developing Economies (IDE-JETRO), Tokyo, pp.185212.[2] Juwita, M. R., Wang, T., Sukma, Y. G., Iskandar, M., Supriyadi, A. (2020, December 10). Potentials And Challenges Of Chinese Foreign Direct Investment In Indonesia. NUANSA: Jurnal Penelitian Ilmu Sosial Dan Keagamaan Islam.[3] Nawiyah, N., Puar, Z. M. (2020, January 1). Pengaruh Investasi China Ke Indonesia, Ekspor Indonesia-China, Dan Tenaga Kerja Terhadap Pertumbuhan Ekonomi Nasional. Prosiding Seminar Nasional Manajemen Industri dan Rantai Pasok. [4] Marisa, S., Masaru, I. (2021, July 27). The Relationship Between Indonesias Foreign Direct Investment And Bilateral Intra-Industry Trade With Japan, China, And ASEAN-9. Jurnal Ekonomi Chinas Foreign Aid and Investment Diplomacy, Volume II: History and Practice in Asia, 1950Present (Vol. II). Palgrave Macmillan.

2. 研究的基本内容、问题解决措施及方案

研究的内容 (Study Content)：We can see how important investment towards Indonesias economic development is by taking Indonesias economic development for the past year. The increasement of Indonesias economy was supported by the escalation of the realization of investment in Indonesia. Thus, there are a lot study that has studied this matter. However, there are still a few of them that focusing the study based on which country the investment came from, especially from China. The previous studies that have analyzed the impact of Chinas FDI on Indonesia has always been towards the economic growth, which is only talks about the countrys GDP. Therefore, in this study, rather than only pay attention to the countrys GDP, we will focus on the improvement of the industrial competitiveness as well. This study will be analyze from my point of view, which is an Indonesian student who studying in China. Thus, I can have more understanding about the issue from the perspective of both countries. The purpose of this paper is first to observe the significant effect between Chinese FDI and economic development in Indonesia and then to try to identify what subsectors have a significant positive impact on economic development in Indonesia.Layout of the thesisBased on the above analysis, the thesis will be analyzed in the following sequence. In Chapter 1 we will focus on the introduction of the research. Chapter 2 will have an analysis of the FDI situation in Indonesia, and will be focusing on Direct Investment from China by each sector of industry. Chapter 3 will focus on the Methodology and Data. In Chapter 4 we will discuss about the results, which it shows The Impact of Chinas FDI on Indonesias Economic Development. And finally in Chapter 5 is the conclusion of this research.拟采用研究方法 (Research Method)：In this study, it focuses on data collection and analysis of numerical data. The data that will be used by the author was pulled from the website of BPS Indonesia (Central Bureau of Statistics in Indonesia) and also BPKM (Indonesian Investment Coordination Board) to analyze the effect of Chinese FDI on Indonesia's Economic Development. The results of the research can be in the form of tables or graphs to explain the verbal presentation of the research results.