The Economic Effects of China’s OFDI in Indonesia

With the development of China’s OFDI in Indonesia, Indonesian domestic stakeholders have doubts about the investment effects of Chinese-funded enterprises, and some scholars have publicly claimed that “Chinese investment has an erosive effect on the Indonesian economy”. In response to this view, this chapter systematically analyses the economic effects of China’s OFDI on Indonesia through empirical regression and three typical cases based on human capital theory, technology localization theory, and factor flow theory.