Foreign investment boosts economic growth in Indonesia, but not in all sectors.
Foreign direct investment (FDI) has a positive impact on economic growth in Indonesia. A study analyzed data from 1994 to 2013 across 17 sub-sectors, finding that FDI boosts the country's GDP. However, not all FDI sectors contribute equally to economic growth. Only four sectors showed a significant positive effect on GDP, indicating the need for government support, such as tax incentives, to attract more FDI in these sectors.