ABSTRACT
The economy of Indonesia is in a stage of rapid diversification in order to reduce its dependence on oil and gas exports. In order to encourage this diversification, the policy is to encourage private investment in Indonesia. Since capital, technology, and professional skills are insufficient at the domestic level, Foreign Direct Investment (FDI) is needed. To assist in this regard, the Government introduced a series of regulations in 1993 and 1994 designed to reduce impediments to both foreign and domestic investment and to attract FDI.
