Policy analysis of capital asymmetry: mitigating domestic-foreign investment imbalances

  • Wanda Kencana Wungu 
    Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu Kota Palembang
    Indonesia

Abstract

Palembang City exceeded its 2025 investment target, recording IDR 11.45 trillion, or 127.25% of the IDR 9 trillion target. However, this aggregate achievement concealed a pronounced capital asymmetry: domestic investment (Penanaman Modal Dalam Negeri, PMDN) reached IDR 10.36 trillion (90.5%), whereas foreign investment (Penanaman Modal Asing, PMA) accounted for IDR 1.09 trillion (9.5%). This study aims to explain the PMDN-PMA imbalance and formulate an asymmetric investment policy for Palembang City. A mixed-method policy-analysis design combined official 2024-2025 investment data, DPMPTSP performance documents, regulatory analysis, and William N. Dunn's six policy-evaluation criteria. The results identify three interrelated problems: a uniform-policy trap, limited PMA-targeted promotion and incentives, and an implementation gap between administrative performance and substantive obstacle resolution. Although online licensing reached 99.76% and the public satisfaction index reached 90.44, only 37.5% of business obstacles were resolved against an 80% target. The Quick Wins scenario—comprising a Foreign Investor Desk, an SLA-based fast track, multilingual investment information, and proactive aftercare—received the highest score (16) and is prioritized for the short term. Integrated investment intelligence is recommended for the medium term, followed by investment-ready land and conditional non-fiscal incentives in the long term. The phased model strengthens institutional responsiveness, investment quality, and linkages between PMA, PMDN, and local MSMEs.

Keywords
  • Capital asymmetry
  • Regional investment
  • Domestic investment
  • Foreign direct investment
  • Policy analysis
Lisensing Information
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How to Cite
Wungu, W. K. (2026). Policy analysis of capital asymmetry: mitigating domestic-foreign investment imbalances. Southeast Asian Journal of Technology and Science, 7(1), 244–253. https://doi.org/10.29210/810712200
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