Innovation and Implementation Paths of China’s FDI in Indonesia

The essence of international investment is the management of “distance”, and managing market boundary differences has become a strategic goal of multinational companies’ foreign investment. To effectively avoid the risks of outsider disadvantage faced in the process of investing in Indonesia, China should innovate its investment and business model and use localized investment in the new situation. This chapter systematically analyzes the theoretical implications, practical characteristics, and effectiveness of localized investment, defines the core elements of localized investment, clarifies the interaction mechanism between elements, and constructs an implementation path for localized investment.