Industrial Park and Foreign Investment for Sustainable Development in Indonesia

Hasan Mustapa, Melda Ria Juwita, Yusuf Gumilar Sukma


In this era of globalization, foreign investment no longer needs to be seen as a threat. On the other hand, foreign investment can be considered as a driving force for national development, including for Indonesia as a developing country, including the construction of Industrial Parks. This study aims to determine the potential and challenges of foreign investment in the development of industrial estates in Indonesia. This paper uses a qualitative descriptive method, where this study describes events that occur and is intended to describe existing phenomena, both natural and human engineering. As a result, this paper finds that the Indonesian government has begun to improve infrastructure so that it is also sufficient to be one of the supporting factors. With a good location and infrastructure, the company's business activities become more effective. And more importantly, the Indonesian government is also willing to provide some fiscal facilities and licensing facilities related to company activities even though they are slightly contrary to sustainable development. Therefore, this research will contribute to the process of increasing foreign investment for sustainable development in Indonesia.


Industrial park, foreign direct investment, sustainable development, eco-efisiensi

Full Text:



Albarran, A. B. (2016). The media economy. Routledge.

Arrow, K., & All., E. (2012). Sustainability and the Measurement of Wealth. Environment and Development Economics, 17(3), 317–53.

Athukorala, P. P. A. W. (2003). The Impact of Foreign Direct Investment for Economic Growth : A Case Study in Sri Lanka The Impact of Foreign Direct Investment for Economic Growth : A Case Study in Sri Lanka. 092, 1–21.

Bank, W. (2019). Indonesia Overview.

Beckerman, W. (2017). ‘Sustainable development’: is it a useful concept? In The Economics of Sustainability (pp. 161–179). Routledge.

BPS. (2019a). Indonesia Economic Growth.

BPS. (2019b). Statistical Yearbook of Indonesia 2019 (S. of S. C. and Publication (ed.)). Indonesian Bureau of Statistics.

Daddi T, Iraldo F, Frey M, Gallo P, G. V. (2015). Regional policies and eco-industrial development: the voluntary environmental certification scheme of the eco-industrial parks in Tuscany (Italy). Journal of Cleaner Production, 114, 62–70.

Dahmus, J. B. (2014). Can efficiency improvements reduce resource consumption? Journal of Industrial Ecology, 18(6), 883–897.

Dariah, A. R., & All., E. (2019). Framework of sustainable development planning in Indonesia. Journal of Physics: Conference Series.

Elliott, J. (2012). An introduction to sustainable development. Routledge.

Forte, R., & Moura, R. (2013). The effects of foreign direct investment on the host country’s economic growth: theory and empirical evidence. The Singapore Economic Review, 58(03), 1350017.

Gossling-Goidsmiths, J. (2018). Sustainable development goals and uncertainty visualization. University of Twente.

Ha, L. T. (2019). Chinese FDI in Vietnam : Trends, Status and Challenges. ISEAS Yusof Ishak Institute Journal, 34, 1–10.

Hudalah D, Viantari D, Firman T, W. J. (2013). No Title. Industrial Land Development and Manufacturing Deconcentration in Greater Jakarta, 34(7), 950–971.

IICB. (2019). Domestic and Foreign Direct Investment Realization Indonesia Invetment Coordinating Board.

Jufrida, F., Syechalad, M. N., & Nasir, M. (2016). Analisis pengaruh investasi asing langsung (FDI) dan investasi dalam negeri terhadap pertumbuhan ekonomi Indonesia. Jurnal Perspektif Ekonomi Darussalam, 2(1), 54–68.

Jung S, Dodbiba G, Chae SH, F. T. (2013). A novel approach for evaluating the performance of eco-industrial park pilot projects. Journal of Cleaner Production, 39, 50–59.

Kambono, H., & Marpaung, E. I. (2020). Pengaruh Investasi Asing Dan Investasi Dalam Negeri Terhadap Perekonomian Indonesia. Jurnal Akuntansi, 12(1), 137–145.

Kikuchi Y, Kanematsu Y, Ugo M, Hamada Y, O. T. (2015). No Title. Industrial Symbiosis Centered on a Regional Cogeneration Power Plant Utilizing Available Local Resources. Journal of Industrial Ecology, 20(2), 276–288.

Kurtishi-Kastrati, S. (2013). The Effects of Foreign Direct Investments for Host Country’s Economy. European Journal of Interdisciplinary Studies, 5(1).

Lauer, R. H. (1993). Perspectives on Social Change. Rineka Cipta.

Lipsey, R. E. (1999). The Role of Foreign Direct Investment in International Capital flows (No. 7094; April).

Maelani, R., Mustapa, H., & Saifullah, I. (2019). Indonesian Human Progressivism: Human Resources Quantity in Educational Philosophy Perspective. Jurnal Pendidikan Universitas Garut, 13(1 (December)), 86–102.

Mehic, E., Silajdzic, S., & Babic-Hodovic, V. (2013). The impact of FDI on economic growth: Some evidence from Southeast Europe. Emerging Markets Finance and Trade, 49(sup1), 5–20.

Mulya, M. M. (2015). Investasi Asing Langsung (Foreign Direct Investment) Sektor Industri Manufaktur Teknologi Tinggi Dan Rendah Di Indonesia. UNIVERSITAS AIRLANGGA.

Pei, M. (2012). China and East Asian Democracy: Is CCP Rule

Fragile or Resilient? Journal of Democracy, 23(1), 27–41.

Resudarmo, B. P., & Irhamni, M. (2008). Indonesia ’ s industrial policy reforms and their environmental impacts. Journal of the Asia Pacific Economy, 13(4 (November)), 426–450.

Salanto, F. (2015). Indonesia Industrial Estate Directory 2015/2016 A Guide for Investors. IIED.

Scott, J. (2012). Social Theories. Pustaka Pelajar.

Sjaifuddin, S. (2018). Environmental management prospects of industrial area : a case study on MCIE, Indonesia. Business: Theory and Practice, October.

Su, Y., & Liu, Z. (2016). China Economic Review The impact of foreign direct investment and human capital on economic growth : Evidence from Chinese cities ☆. China Economic Review, 37, 97–109.

Suh, Y., Seol, H., Bae, H., & Park, Y. (2014). Eco-efficiency based on social performance and its relationship with financial performance. Journal of Industrial Ecology, 18(6), 909–919.

Tao, S., Weidong, L. I. U., Zhigao, L. I. U., & Yeerken, W. (2018). Chinese overseas industrial parks in Southeast Asia : An examination of policy mobility from the perspective of embeddedness. Journal of Geographical Sciences, 28(17), 1288–1306.

Ukaga, U., Maser., C., & Reichenbach, M. (2011). Sustainable development: principles, frameworks, and case studies. International Journal of Sustainability in Higher Education, 12(2). ijshe.2011.24912bae.005.

Umanailo, M. C. B. (2019). Struktur perubahan sosial dalam masyarakat industri (Issue October).

UNCTAD. (2017). ASEAN Investment Report 2017 (50th ed.). The ASEAN Secretariat.

Weissleder, L. (2009). Foreign Direct Investment in the Agricultural Sector in Ethiopia. Ecofair Trade Dialogue, 12(Discussion Paper).

Zeng, G., Zhao, H., & Hu, H. (2018). Report on Construction and Development of China’s Overseas Industrial Parks under the “Belt And Road” Initiatives. China Social Sciences Press.

Zhai, T. T., & Chang, Y. C. (2019). Standing of environmental public-interest litigants in China: Evolution, obstacles and solutions. Journal of Environmental Law, 30, 369–397.

Zhang Y, Zheng H, Yang Z, Liu G, S. M. (2015). Analysis of the industrial metabolic processes for sulfur in the Lubei (Shandong Province, China) eco-industrial park. Journal of Cleaner Production, 127–138.

Zhao H, Zhao H, G. S. (2017). Evaluating the comprehensive benefit of eco-industrial parks by employing multi-criteria decision making approach for circular economy. Journal of Cleaner Production, 142, 2262–2276.



  • There are currently no refbacks.

Copyright (c) 2021 Hasan Mustapa

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 1st Floor, Building of Pascasarjana UIN Sunan Gunung Djati

Kota Bandung, Jawa Barat
Handphone: +628993123454


Lisensi Creative Commons

Khazanah Sosial  are licensed under Attribution-ShareAlike 4.0 International

Click Her For See Stats