Establishing A Sustainable Direct Investment Supply Chain Design for Appropriate Monitoring of Foreign Investment Projects

Abstract

Foreign Direct Investment (FDI) is vital for economic growth, yet ensuring project sustainability remains challenging. This study explores the necessity of a sustainable direct investment supply chain design to monitor FDI in Indonesia effectively. Using a conceptual analysis and literature review, the research identifies key challenges and examines best practices from countries with relevant experience. The study synthesizes data from government reports and academic publications to develop a proposed framework. Case studies show that sustainable supply chain designs significantly improve efficiency, transparency, and accountability, fostering balanced economic development and social well-being. The novelty lies in its comprehensive analysis tailored specifically to the Indonesian context, addressing a gap in existing literature. This study offers actionable insights for policymakers and practical tools for practitioners to bolster FDI management. Ultimately, establishing this framework is crucial for ensuring FDI projects yield enduring economic, environmental, and social benefits. This study contributes to the literature by developing a sustainable direct investment supply chain design that integrates transparency, accountability, holistic risk management, and stakeholder engagement into a comprehensive monitoring framework for foreign investment projects in Indonesia. The proposed framework offers a context-specific approach to strengthen monitoring practices and support sustainable economic, environmental, and social outcomes.