International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 7 - Issue 4, April 2018 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Indonesia Tourism In Attracting Foreign Investors: The Role Of FDI

[Full Text]



Nur Latifa Isnaini Putri, Sudaryanto



Competitiveness, Country, FDI, Global Marketing, Job Creation, MSMEs, Tourism



Foreign direct investment (FDI) is widening its wings in developing countries, one of which is Indonesia. Developing countries are considered as areas that still need a lot of polish to be used as investment fields, so this phenomenon is considered as a golden opportunity for investors. In addition, Indonesia as the rich country in natural resources can easily knock the hearts of investors to invest in the country. This article aims to analyze the role of FDI in various sectors of Indonesia, using literature studies. The results show that FDI is able to improve the tourism sector in Indonesia, spurring Indonesia to create differentiation that has an appeal especially in the field of tourism, FDI able to improve local products and can reduce unemployment.



[1] A.Tomohara. 2017. Relat ion sh ips b etween in tern at ion al tourism and modes of foreign market access. International Economics

[2] F.Noorbakhsh & A.Paloni. 2001. Human Capital and FDI Inflows to Developing Countries : New Empirical Evidence

[3] A.Tomohara 2016, Japan’ s tourism-led foreign direct investment inflows: An empirical study. Economic Modelling 52, 435–441.

[4] Tang, Sumei, E.A. Selvanathan. Saroja Selvanathan. 2007. The relationship between foreign direct investment and tourism: Empirical evidence from China. Tourism Economics 13(1), 25–39

[5] Fosfuri, A., Motta, M. & Rønde, T. (2001), foreign direct ınvesment and spillovers through workers' mobility, Journal of International Economics,53,.205-222.

[6] Glass, A.J. & Saggi, K. (2002), Multinational firms and technology transfer, Scandinavian Journal of Economics, 104, 495-513.

[7] Görg, H. & Strobl, E. (2001), Multinational companies and productivity spillovers: A meta-analysis, The Economic Journal, Vol. 111, No. 475, F723–F739

[8] Anand, Binod.2015. Reverse Globalization by Internationalization of SME’s: Opportunities and Challenges Ahead. Procedia - Social and Behavioral Sciences 195 ( 2015 ) 1003 – 1011.

[9] Argiarini, Via Dya. 2017. Quality Business Travel Management Services on Banyuwangi Blutama Tour and Travel. Jember University Research Report.

[10] Databoks.katadata.co.id. Number of Foreign Tourist Visits to Indonesia (Januari 2016-Juli 2017). Accessed on 20 Desember 2017.

[11] M.A. Khumaedy. 2017. setkab.go.id. Tahun-2017-kita-genjot-sektor-pariwisata/. Accessed on 20 Desember 2017.

[12] Kneller, R., Pisu, M., 2007. Industrial linkages and export spillovers from FDI. World Econ. 30 (1), 105e134.

[13] Lemoine, F., Ünal-Kesenci, D., 2004. Assembly trade and technology transfer: the case of China. World Dev. 32 (5), 829e850

[14] Lin, Justin. Y. 2004. “Development Strategies for Inclusive Growth in Developing Asia”. Asian Development Review, Vol. 21, No.2.

[15] Narula, R. dan Dunning J.H. (2000), Industrial development, globalization and multinational enterprises: new realities for developing countries, Oxford Development Studies.

[16] Oura, Massao, M., Zilber, Novaes, S., & Lopes, Luiz, E. 2015. Innovation Capacity,International Experience and Export Performance. International Business Review.

[17] Rai Utama, I Gusti B. 2017. Pemasaran Pariwisata. Yogyakarta : CV. ANDI OFFSET

[18] Reilly, Frank.2003. Investment Analysis and Portfolio Management. US: Thomson South-Western Inc.

[19] Salim H.S., & Sutrisno, Budi. 2012. Hukum Investasi di Indonesia. Jakarta : PT. Raja Grafindo Persada.

[20] Salim, Ali, Razavi,M.R.,& Mofrad,M.A.2015. Foreign direct investment and technology spillover in Iran: The role of technological Capabilities of subsidiaries. Technological Forecasting & Social Change xxx (2015) xxx–xxx.

[21] Santos, Maria, Brochado,Ana,& Esperança, José.2016. Foreign direct investment patterns of global hotel chains. Journal of Business Research xxx (2016) xxx–xxx.

[22] Simamora, H. 2000. Manajemen Pemasaran Internassional. Jakarta : Salemba Empat

[23] Tomoh ara, Akin ori. 2017. Relat ion sh ips b etween in tern at ion al tourism and modes of foreign market access. Int ernational Economics.

[24] Tuan, Chyau, Ng, Linda F.Y.,& Zhao,Bo.2009. China’s post-economic reform growth:The role of FDI and productivity progress. Journal of Asian Economics 20 (2009) 280–293.

[25] Tvaronavi cius, V., Tvaronavi ciene, M., 2008. Role offixed investments in economic growth of country: Lithuania in European context. J. Bus. Econ. Manag. 9 (1),57e64.

[26] Laws of the republic Indonesia. 2007. Law of the Republic of Indonesia Number 25 of 2007 on Investment.

[27] Laws of the republic Indonesia. 2009. Law of the Republic of Indonesia Number 10 of 2009 About Tourism.

[28] Vahter, P., 2010. Does FDI Spur Innovation, Productivity and Knowledge Sourcing by Incumbent Firms? Evidence from Manufacturing Industry in Estonia. William Davidson Institute Working Paper Number 986.

[29] Wang, C., Kafouros, M.I., 2009. What factors determine innovation performance in emerging economies? Evidence from China. Int. Bus. Rev. 18 (6), 606e616.

[30] Xuegong, Sun, Liyan, Guo,& Zheng, Zeng.2013. Market entry barriers for foreign direct investment and private investors: Lessons from China’s electricity market. Energy Strategy Reviews 2 (2013) 169e175.

[31] N.S.Tuluce,I.Dogan. 2014. The Impact of Foreign Direct Investments on SMEs’ Development. Procedia - Social and Behavioral Sciences 150 ( 2014 ) 107 – 115