This contribution attempts to assess the effects of implementing foreign investment in Indonesia on the country's imports from home countries. This effect is found to be sizeable as more than 50% of realised foreign investment in Indonesia is implemented in kind i.e. by importing plant...

The author shows that the US as the world's largest investor abroad so far shuns the most dynamic host region East Asia including China and instead continues to focus on investment in Europe. In contrast, Germany follows a different path. Similar to trade, German companies have been very active...