ACCT 801: Lincoln Electric Co. Venturing into Indonesia

Indonesia has a relatively open foreign investment regime and looks to foreign investment to help the country out of the current economic crisis. It has established a niche for low-cost manufacturing, which would be beneficial for Lincoln. The new government has been transforming Indonesia into a country with one of the most liberal policy and regulatory frameworks for investments in Southeast Asia (http://www.us-asean.org/Indonesia/business_guide/foreign_direct_investment.asp). However, Indonesia …

…government intervention to curb the development. Thus, combating corruption is a key part of improving the investment climate. http://www.adb.org/Documents/Books/ADO/2005/ino.asp Security Security is another important issue for investors, and it is the central government's responsibility to ensure foreign investors are protected from risks. Without clear rules and regulations with regard to foreign investment and security on investment, foreign investors are unlikely to venture into investing in unfamiliar regions.