Japan is the largest foreign investor in Indonesia at the end of June 1960 with a value of US $3.9 billion invested in 202 projects. Secretary-General of the Industry Ministry, Agus Sujono said Japanese investment projects that have been completed at that time amounted to US $ 1.5 billion. In April 1971, the Ministry of Agriculture of Indonesia grants permission to companies from Japan and East Malaysia to conduct joint forestry in Borneo.
By 1972, the Japanese government has provided investment financial assistance amounting to 5.4 million yen to private entrepreneurs in Indonesia. In May 1972, President Suharto left for Tokyo in hopes of strengthening relations between Indonesia and Japan that was taking Indonesia towards political and economic stability.
Inhaltsverzeichnis (Table of Contents)
- Chapter 1: Early Japanese Investment in Indonesia (1960-1979)
- Chapter 2: Continued Japanese Investment and Shifting Dynamics (1980-1987)
- Chapter 3: Challenges and Adjustments in Japanese-Indonesian Economic Relations (1987-1990)
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text aims to provide a chronological overview of Japanese foreign direct investment (FDI) in Indonesia from 1960 to 1990. It analyzes the evolving nature of this relationship, highlighting key periods of growth, challenges faced, and the strategies employed by both countries to maintain and strengthen economic ties.
- The growth and fluctuation of Japanese investment in Indonesia over time.
- The Indonesian government's policies regarding foreign investment and their impact on Japanese investment.
- The changing nature of the economic relationship between Japan and Indonesia.
- The role of specific events (e.g., the Gulf crisis) in shaping economic interactions.
- The perspectives of both Indonesian and Japanese stakeholders involved in the economic partnerships.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1: Early Japanese Investment in Indonesia (1960-1979): This chapter details the early stages of substantial Japanese investment in Indonesia, starting from Japan's position as the largest foreign investor by 1960. It charts a period of significant growth in Japanese investment across various sectors, including forestry, aluminum production, and hydroelectric power. The narrative highlights several key events, such as President Suharto's visits to Japan to foster stronger diplomatic and economic ties, and the increasing reliance of Indonesia on Japanese technology and capital. The chapter also notes the Indonesian government's evolving policies toward foreign investment and the emergence of joint ventures, showcasing the symbiotic relationship between the two nations' economic agendas, despite the ongoing evolution of Indonesian economic policy and some Indonesian concerns about over-reliance on Japanese investment and technology. The chapter closes with an increasing dialogue about diversifying Indonesia's sources of investment.
Chapter 2: Continued Japanese Investment and Shifting Dynamics (1980-1987): This chapter focuses on a period of both continued Japanese dominance in Indonesian foreign investment and the emergence of complexities in the relationship. While Japan remained the top investor throughout this period, concerns arose regarding Indonesia's heavy reliance on Japanese technology and capital, leading to calls for diversification. The chapter presents conflicting narratives: while Japanese investment continued to flow into Indonesia (particularly in oil and gas), there were instances where Japanese companies expressed hesitancy due to factors such as market saturation, rising costs, and insufficient incentives. The Indonesian government's response to these challenges and its efforts to attract investment from other sources are central to this chapter’s narrative. It further underscores the political and economic interplay, demonstrating how Indonesia navigated maintaining its relationship with its largest investor while attempting to strengthen its economic resilience and strategic independence. The chapter’s focus on Indonesia's attempts to diversify showcases a complex negotiation of economic interdependence and national self-interest.
Chapter 3: Challenges and Adjustments in Japanese-Indonesian Economic Relations (1987-1990): This chapter explores the late 1980s, a period characterized by continued efforts by Indonesia to diversify its investment sources and to balance its reliance on Japan. Despite the ongoing desire for diversification, Japan remained a crucial economic partner, and the chapter documents significant ongoing Japanese investment. The impact of global events, such as the Gulf crisis and its impact on oil supply, is analyzed. The chapter highlights the ongoing dialogue between Indonesia and Japan, balancing the Indonesian government’s desire to prevent over-dependence on any single country with the importance of maintaining and strengthening their significant economic ties. This period witnesses a more nuanced and strategic approach to the relationship, reflecting Indonesia's growing economic sophistication and its pursuit of a more balanced and robust economic landscape. Specific examples of continued large-scale Japanese investment in Indonesia, along with diplomatic exchanges at the highest levels, underscore the ongoing complexity and dynamism of this bilateral economic relationship. Further, the chapter illuminates the efforts to stimulate investment in specific regions, showcasing the multi-faceted nature of Indonesian-Japanese economic cooperation.
Schlüsselwörter (Keywords)
Japanese investment, Indonesia, foreign direct investment (FDI), economic relations, bilateral trade, diversification, technology transfer, joint ventures, economic development, political economy, Southeast Asia.
Frequently Asked Questions: A Chronological Overview of Japanese Foreign Direct Investment in Indonesia (1960-1990)
What is the main topic of this text?
This text provides a chronological overview of Japanese foreign direct investment (FDI) in Indonesia from 1960 to 1990. It analyzes the evolving nature of this relationship, highlighting key periods of growth, challenges, and strategies employed by both countries to maintain and strengthen economic ties.
What time period does this text cover?
The text covers the period from 1960 to 1990, examining the development of Japanese investment in Indonesia across three distinct decades.
What are the key themes explored in this text?
Key themes include the growth and fluctuation of Japanese investment over time; Indonesian government policies on foreign investment and their impact; the changing nature of the Japan-Indonesia economic relationship; the role of specific events (like the Gulf crisis); and the perspectives of both Indonesian and Japanese stakeholders.
How is the text structured?
The text is structured chronologically, divided into three chapters covering distinct periods: 1960-1979, 1980-1987, and 1987-1990. Each chapter provides a summary of the key events and trends during that period.
What were the early stages of Japanese investment in Indonesia like (1960-1979)?
This period saw significant growth in Japanese investment across sectors like forestry, aluminum, and hydroelectric power. Japan became the largest foreign investor. The text highlights President Suharto's visits to Japan to strengthen ties and Indonesia's increasing reliance on Japanese technology and capital. Joint ventures emerged, but concerns about over-reliance on Japanese investment began to surface.
What were the dynamics of the relationship between 1980 and 1987?
Japan remained the top investor, but concerns about Indonesia's dependence on Japanese technology and capital grew, leading to calls for diversification. While Japanese investment continued, some Japanese companies expressed hesitancy due to market saturation, rising costs, and insufficient incentives. The Indonesian government worked to attract investment from other sources.
What challenges and adjustments occurred in the period from 1987 to 1990?
This period saw continued Indonesian efforts to diversify investment sources while maintaining a crucial relationship with Japan. Global events like the Gulf crisis impacted the relationship. Indonesia adopted a more nuanced approach, balancing its desire to avoid over-dependence on any single country with the need to strengthen existing economic ties with Japan. The text highlights continued large-scale Japanese investment and diplomatic exchanges.
What are some key words associated with this text?
Key words include Japanese investment, Indonesia, foreign direct investment (FDI), economic relations, bilateral trade, diversification, technology transfer, joint ventures, economic development, political economy, and Southeast Asia.
What is the overall conclusion of this text?
The text demonstrates the complex and dynamic nature of the Japanese-Indonesian economic relationship over three decades, highlighting the periods of growth, the challenges of dependence, and the evolving strategies employed by both countries to navigate their economic interdependence.
- Quote paper
- Uqbah Iqbal (Author), 2015, A Brief History of the Economic Relations between Indonesia and Japan, Munich, GRIN Verlag, https://www.grin.com/document/310708