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Foreign Direct Investment (FDI) Year-over-Year measures the annual change in the value of long-term capital investments made by foreign entities into Indonesia's economy. This indicator reflects the attractiveness of the domestic business environment and the level of international confidence in the country's economic stability. High FDI levels are crucial for infrastructure development, technology transfer, and job creation in emerging markets like Indonesia.
The data is compiled by the Indonesia Investment Coordinating Board (BKPM) based on realized investment reports submitted by foreign companies operating in Indonesia. It excludes investments in the oil, gas, and financial sectors which are regulated separately.
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