CONTRADICTIONS ECONOMIC GROWTH& INVESTOR EXIT IN INDONESIA

Abstrak

Slowing global economic growth and a decline in the level of trust business institutions in
the Euro Area and the United Kingdom to Indonesia contributed to an economic slowdown in
Indonesia. Although economic growth in Indonesia alone to increase, but it can not support the
climate of the industry that is conducive and  increasing purchasing power, as is still needed
"invisible hand" of the government to minimize the "Transaction Cost" and "Relational Contract"
and wages rill employees decreased resulting in decreased demand society to product processing
industry which led to the departure of some foreign companies in Indonesia. The government's
economic policy issued gradually expected to accelerate Indonesia out of the "vicious circle" both
economic slowdown and improve Indonesia's competitiveness, in order to spur national economic
growth and a better investment. Government policy hope will support company to make their
business sustainable