Tangerang Case Study

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With respect to MSMEs linkages, foreign companies have limited linkages to MSMEs in Mojokerto and Tangerang. The MSMEs in the two districts have limited access to interact with foreign companies and also have insufficient capital to fulfill the demand of foreign companies. Moreover, in Tangerang, foreign companies do not have enough information about the availability and the quality of MSMEs. The limited linkages between FDI and MSMEs in Tangerang are also caused by the fact that industries in Tangerang are mostly export-oriented industries which import their inputs from abroad rather than purchase them from domestic companies. Those all problems cause FDI in Mojokerto and Tangerang have less linkage to MSMEs. The theoretical framework has suggested that the positive contributions of FDI to inclusive growth are influenced by the existence of inclusive institutions in the regions. Inclusive institutions include the programs and policies of foreign companies and local governments that expand allow all member of society, including marginalized people to gain benefits from FDI activities (economic institutions). In addition, inclusive…show more content…
The agreement is a product of negotiation between international hotel and local people. International hotel involves local people to express their voices and engage them in the negotiation process. As a result, the agreement had accommodated the aspiration and interests of local people and also international hotel. For enhancing the aspect of accountability, international hotel is always transparent in hiring local people by informing the vacancies to local people before announcing to the public. Besides the agreement, international hotel also commits to employ disable workers at least one percent of the total workers, as required by national government

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