China’s Investment in Indonesia

As demonstrated convincingly in this, the third chapter of the book, the increase in Chinese outward foreign direct investment (FDI) in Indonesia has produced both positive and negative impacts.  As for the former, Chinese outward FDI (OFDI) has brought greater employment opportunities, higher income levels, and better living standards.  As for the latter, rising Chinese OFDI (COFDI) has produced complex social and environmental challenges.  Regarding social challenges, tensions between Chinese migrant workers and locals have accelerated over the years, with the latter viewing the former as competitors for jobs.  Limited knowledge transfer from Chinese investors also has fueled tensions, especially when skilled jobs are given to Chinese workers or local talent from other provinces.  Turning to environmental issues, COFDI has generated pollution, health risks, and biodiversity loss.  All of these issues have led to contrasting attitudes toward COFDI within Indonesia.  More information about the book can be found at https://www.routledge.com/The-Effects-of-Chinese-FDI-in-Southeast-Asia-Cheer-Commonsense-and-Clarification-Along-the-Belt-and-Road/Blanchard/p/book/9781041066002.