Foreign direct investment (FDI) has helped Indonesia's manufacturing industry grow by bringing in money and new technology. This new technology has also helped local companies improve. The study looked at data from 1975 to 2000 and found that there were positive and significant benefits for local firms. Interestingly, the benefits were different before and after the country opened up its economy. This shows that the local firms' ability to learn and use new technology depends on the industry they are in.