The role of multinational corporations in Indonesian economic development through foreign direct investment and international trade

This paper looks into the role of the multinational corporations in Indonesia from a historical perspective. There are a number of examples with regard to the role played by these companies and also the steps taken by the Government of Indonesia to regulate them. This paper concludes that the presence of multinational companies among others can improve the living standards of most of the local economy and provide income for the state with nearly 50% of Indonesia's exports by multinational companies, although on the other hand, the presence of multinational companies has changed the political and legal order of Indonesia.