ORIGINAL RESEARCH article

Front. Polit. Sci.

Sec. Comparative Governance

Volume 7 - 2025 | doi: 10.3389/fpos.2025.1562656

GOVERNANCE PERSPECTIVE: FOREIGN INVESTMENT IN DECENTRALIZATION IN INDONESIA

Provisionally accepted
  • Government Science, Universitas Musi Rawas, Lubuklinggau, Indonesia

The final, formatted version of the article will be published soon.

Background and Objectives: To find out the governance dimension of the South Sumatra Provincial Government in the implementation of foreign investment and to explain that the local government has the authority to regulate in the implementation of policies or become a facilitator in the provision of public goods and services. This research argues that local governments are still weak in managing foreign investment because the regions do not have full authority, so the regions have opportunities to implement administrative capabilities in the regions. This research aims to answer the problem of foreign investment in decentralization in Indonesia. Methods: The method used in this research is qualitative. All analyses were conducted using N Vivo 12 Plus.The results of this study indicate that decentralization can increase the growth of economic and social development in the region because it promotes regional transparency, accountability, and responsiveness. However, the weakness of local government is the absence of authority in the administrative capability of foreign investment. This is because the region is only a facilitator and supervisor following central government regulations.

Keywords: governance, Decentralization, Foreign investment, Indonesia, perspecive

Received: 17 Jan 2025; Accepted: 03 Jun 2025.

Copyright: © 2025 Farhan. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

* Correspondence: Eva Kurnia Farhan, Government Science, Universitas Musi Rawas, Lubuklinggau, Indonesia

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