Priviet Social Sciences Journal

Cooperation possibility between Gorontalo Government and Foreign Investors regarding the leasing of Saronde Island in North Gorontalo: A public discourse on social media

by Ismail Tahir ORCID , Siti Nurindah Mointi ORCID

Abstract

Foreign investment has the potential to develop infrastructure and strengthen local economies. However, clear transparency in governance, environmental sustainability, and equitable benefits for such communities are still questioned. Previous research that examines foreign investment in Indonesian tourism has mainly focused on more established destinations, such as Bali and Lombok whilst only a few is identified about how emerging areas like Saronde Island in Gorontalo could design sustainable investment contracts. This study uses a qualitative analysis from the collected data in social media (Facebook, X, and Instagram) to examine the feasibility and challenges of foreign investment in Saronde Island, Gorontalo. The results indicate that, though foreign investment can boost tourism growth, fragile regulatory and environmental protection frameworks may threaten its sustainability in the longer term period. In comparison with other island tourism destinations, policy innovations, transparent governance, and inclusive stakeholder engagement are decisive factors. Furthermore, this study provides a way forward to the literature of mining investment governance for sustainable investment growth in Indonesia. It also points to significant regulatory and institutional developments necessary to balance economic, environmental, and social accountability. Future studies are encouraged to include primary stakeholder perspectives and investigate hybrid investment models that combine local and foreign investments to guarantee sustainable tourism development in Gorontalo.

References

  1. Abdillah, N., Thamrin, T., Nofrizal, N., & Wijayanto, G. (2023). Quantifying Ecological, Economic, Social, and Governance Attributes for Urban Forest Eco-Tourism Using MDS-RAPFISH Approach. International Journal of Sustainable Development and Planning, 18(8), 2369-2378 https://doi.org/10.18280/ijsdp.180807
  2. Adekunle, I. A. (2021). On the search for environmental sustainability in Africa: the role of governance. Environmental Science and Pollution Research, 28(12), 14607-14620. https://doi.org/10.1007/s11356-020-11432-5
  3. Ahmad, B., & Azarkasi, A. (2019). Pemasaran Kebijakan Politik Luar Negeri Sebagai Diplomasi Presiden Jokowi Untuk Menarik Investor Asing di Indonesia. KEMUDI : Jurnal Ilmu Pemerintahan, 4(1), 50-73. https://doi.org/10.31629/kemudi.v4i1.1307
  4. Akhtar, M. Z., Zaman, K., & Khan, M. A. (2024). Tourism triumphs: unraveling the essence of Asia’s allure through governance, FDI, and natural bounties. Journal of Environmental Studies and Sciences, 14(2), 269-286. https://doi.org/10.1007/s13412-023-00877-y
  5. Al-Fazari, H., & Teng, J. (2019). Adoption of One Belt and One Road initiative by Oman: Lessons from the East. Journal for Global Business Advancement, 12(1), 145-166. https://doi.org/10.1504/JGBA.2019.099921
  6. Ardhiati, Y., Begin, D. T., & Hariprasetyo, T. (2021). Mandalika: Eco-cultural Tourism in Lombok. International Journal of Architectonic, Spatial, and Environmental Design, 16(2), 61-73. https://doi.org/10.18848/2325-1662/CGP/v16i02/61-73
  7. Barrowclough, D. (2007). Foreign investment in tourism and small island developing states. Tourism Economics, 13(4), 615-638. https://doi.org/10.5367/000000007782696122
  8. Bayar, Y., Remeikiene, R., Androniceanu, A., Gaspareniene, L., & Jucevicius, R. (2020). The shadow economy, human development and foreign direct investment inflows. Journal of Competitiveness, 12(1), 5-21. https://doi.org/10.7441/joc.2020.01.01
  9. Belloumi, M., & Alshehry, A. (2018). The impacts of domestic and foreign direct investments on economic growth in Saudi Arabia. Economies, 6(1), 1-17. https://doi.org/10.3390/economies6010018
  10. Castro-Arce, K., & Vanclay, F. (2020). Transformative social innovation for sustainable rural development: An analytical framework to assist community-based initiatives. Journal of Rural Studies, 74, 45-54. https://doi.org/10.1016/j.jrurstud.2019.11.010
  11. Chan, J. K. L. (2023). Sustainable Rural Tourism Practices From the Local Tourism Stakeholders’ Perspectives. Global Business and Finance Review, 28(3), 136-149. https://doi.org/10.17549/gbfr.2023.28.3.136
  12. Chen, T. J., Chen, H., & Ku, Y. H. (2004). Foreign direct investment and local linkages. In Journal of International Business Studies, 35(4), 320-333. https://doi.org/10.1057/palgrave.jibs.8400085
  13. Daimi, S., & Rebai, S. (2022). Sustainability governance indicator-based framework for public transport companies in developing countries. Journal of Cleaner Production, 380. https://doi.org/10.1016/j.jclepro.2022.134942
  14. Dhaoui, I. (2022). E-Government for Sustainable Development: Evidence from MENA Countries. Journal of the Knowledge Economy, 13(3), 2070-2099. https://doi.org/10.1007/s13132-021-00791-0
  15. Dietz, T., Börner, J., Förster, J. J., & von Braun, J. (2018). Governance of the bioeconomy: A global comparative study of national bioeconomy strategies. Sustainability (Switzerland), 10(9), 1-20. https://doi.org/10.3390/su10093190
  16. Djau, B. (2022). Kwandang waterfront city development study against the water conditions of north gorontalo regency. Tomini Journal of Aquatic Science, 2(2), 68-81. https://doi.org/10.37905/tjas.v2i2.13758
  17. Fang, H., Chrisman, J. J., Memili, E., & Wang, M. (2020). Foreign venture presence and domestic entrepreneurship: A macro level study. Journal of International Financial Markets, Institutions and Money, 68. https://doi.org/10.1016/j.intfin.2020.101240
  18. Fauzel, S. (2020). FDI and tourism futures: a dynamic investigation for a panel of small island economies. Journal of Tourism Futures, 7(1), 98-110. https://doi.org/10.1108/JTF-05-2018-0026
  19. Firmino, S. I. (2018). Critical success factors of public-private partnerships: Politicaland institutional aspects. case study of highways in Portugal. Revista de Administracao Publica, 52(6), 1270-1281. https://doi.org/10.1590/0034-761220170228
  20. Gao, B., Ozturk, I., & Ullah, S. (2023). A new framework to the green economy: asymmetric role of public-private partnership investment on environment in selected Asian economies. Economic Research-Ekonomska Istrazivanja , 36(1), 1960-1971. https://doi.org/10.1080/1331677X.2022.2094441
  21. Ghazi, M. (2021). The Determinant of Foreign Direct Investment in Indonesia. JURNAL BISNIS DAN AKUNTANSI, 23(2), 297-306. http://jurnaltsm.id/index.php/JBA
  22. Gupta, A., & Sharma, A. K. (2023). The role of institutional and governance factors in public–private partnerships infrastructure investments in emerging economies. Journal of Public Affairs, 23(4). https://doi.org/10.1002/pa.2874
  23. Handoyo, S. (2018). The Role of Public Governance in Environmental Sustainability. Jurnal Ilmiah Peuradeun, 6(2), 161. https://doi.org/10.26811/peuradeun.v6i2.255
  24. Harrison, R. T. (2022). “Pennies from heaven”? Market failure, circuits of capital and policy support for business angels: The case of cross-border angel investment. Journal of Business Venturing Insights, 17, 1-13. https://doi.org/10.1016/j.jbvi.2022.e00311
  25. Heyl, K., Ekardt, F., Sund, L., & Roos, P. (2022). Potentials and Limitations of Subsidies in Sustainability Governance: The Example of Agriculture. Sustainability (Switzerland), 14(23), 1-26. https://doi.org/10.3390/su142315859
  26. Indriastuti, S. (2022). Comparing Coal Mining Industries and Palm Oil Plantations Impacts on The Human Security of Local Communities. Indonesian Journal of Geography, 54(1), 29-38. https://doi.org/10.22146/ijg.59754
  27. Ji, H., & Darnall, N. (2022). How do external conditions affect the design of local governments’ sustainability strategies? Regulation and Governance, 16(3), 910-929. https://doi.org/10.1111/rego.12334
  28. Kamah, M. H., Sahami, F. M., & Baruadi, A. S. (2022). Coastal tourism development of Diyonumo Island, East Sumalata District, Gorontalo-Indonesia, based on natural resources and carrying capacity. Aquatic Science & Management, 10(1), 23. https://doi.org/10.35800/jasm.v10i1.40198
  29. Karunia, A. A. (2022). Penegakan Hukum Tindak Pidana Korupsi di Indonesia dalam Perspektif Teori Lawrence M. Friedman. Jurnal Hukum Dan Pembangunan Ekonomi, 10(1), 115.
  30. Kostoska, O., & Kocarev, L. (2019). A novel ICT framework for sustainable development goals. Sustainability (Switzerland), 11(7), 1-31. https://doi.org/10.3390/su11071961
  31. Kurniawan, F., Amanati, H. T., Nugroho, A. H. L., & Pusparini, N. O. (2024). Effects of policy and economic uncertainty on investment activities and corporate financial reporting: a study of developing countries in Asia-Pacific. Asian Review of Accounting, 32(3), 373-393. https://doi.org/10.1108/ARA-12-2022-0290
  32. Li, Y., & Mahamood, A. F. (2022). Advantages of Marketing Communication in the Development of a Tourism Brand. Journal of Educational and Social Research, 12(6), 273-281. https://doi.org/10.36941/jesr-2022-0162
  33. Liu, T., Yang, X., & Zheng, Y. (2020). Understanding the evolution of public–private partnerships in Chinese e-government: four stages of development. Asia Pacific Journal of Public Administration, 42(4), 222-247. https://doi.org/10.1080/23276665.2020.1821726
  34. Mapanga, A. (2021). A Value Chain Governance Framework For Economic Growth In Developing Countries. Academy of Strategic Management Journal, 20(2), 1-13.
  35. Massuga, F., Larson, M. A., Kuhl, M. R., & Doliveira, S. L. D. (2023). The influence of global governance on the sustainable performance of countries. Environment, Development and Sustainability, 26, 28567-28589. https://doi.org/10.1007/s10668-023-03827-4
  36. Mawutor, J. K. M., Sogah, E., Christian, F. G., Aboagye, D., Preko, A., Mensah, B. D., & Boateng, O. N. (2023). Foreign direct investment, remittances, real exchange rate, imports, and economic growth in Ghana: An ARDL approach. In Cogent Economics and Finance, 11(1), 1-27. https://doi.org/10.1080/23322039.2023.2185343
  37. Munir, U. (2022). Konsep Kebijakan Pariwisata Berbasis Kerakyatan (Studi Pariwisata Di Pulau Lombok). YUSTISIA MERDEKA : Jurnal Ilmiah Hukum, 8(2), 125-134. https://doi.org/10.33319/yume.v8i2.199
  38. Nahak, S., & Budiartha, I. N. P. (2021). Legal Protection of Land Tenure by Foreign Investors through Nominee Agreement in Bali, Indonesia. International Journal of Criminology and Sociology, 10, 589-594. https://doi.org/10.6000/1929-4409.2021.10.68
  39. Nguyen, N. M. (2023). The effect of FDI on domestic entrepreneurship: the case of greenfield investment and cross-border M&A activities. Journal of Economics and Development, 25(1), 62-78. https://doi.org/10.1108/JED-11-2022-0228
  40. Nguyen, T. T., Nasir, M. A., & Vo, X. V. (2024). Exchange rate dynamics of emerging and developing economies: Not all capital flows are alike. International Journal of Finance and Economics, 29(1), 1115-1124. https://doi.org/10.1002/ijfe.2724
  41. Nicolò, G., L’Abate, V., Raimo, N., & Vitolla, F. (2024). Exploring the antecedents of local governments’ sustainability disclosure: The role of the mayor. Journal of Public Affairs, 24(1). https://doi.org/10.1002/pa.2908
  42. Nxazonke, B., & van Wyk, R. B. (2020). The role of foreign direct investment (FDI) on domestic entrepreneurship in South Africa. Development Southern Africa, 37(4), 587-600. https://doi.org/10.1080/0376835X.2019.1667751
  43. Páez-Pérez, D., & Sánchez-Silva, M. (2016). A dynamic principal-agent framework for modeling the performance of infrastructure. European Journal of Operational Research, 254(2), 576-594. https://doi.org/10.1016/j.ejor.2016.03.027
  44. Palaco, I., Park, M. J., Kim, S. K., & Rho, J. J. (2019). Public–private partnerships for e-government in developing countries: An early stage assessment framework. Evaluation and Program Planning, 72, 205-218. https://doi.org/10.1016/j.evalprogplan.2018.10.015
  45. Pramodia Ahsan, R. D., Mulyani, S., Wulandari, C., & Ayu Saputri, L. B. (2022). Collaborative Governance Model During COVID-19: Towards Sustainable Tourism in Yogyakarta. KnE Social Sciences, 749-768. https://doi.org/10.18502/kss.v7i9.10977
  46. Purniawati, P., Kasana, N., & Rodiyah, R. (2020). Good Environmental Governance in Indonesia (Perspective of Environmental Protection and Management). The Indonesian Journal of International Clinical Legal Education, 2(1), 43-56. https://doi.org/10.15294/ijicle.v2i1.37328
  47. Rahmat, T., & Apriliani, D. (2023). Model of Global HR Development and Green Economy Diplomacy: Strengthening Global Environmental Governance in Indonesia. Journal of Law and Sustainable Development, 11(11), 1-26. https://doi.org/10.55908/sdgs.v11i11.404
  48. Raza, A., Nadeem, M. I., Ahmed, K., Hassan, I., Eldin, S. M., & Ghamry, N. A. (2023). Is Greenfield investment improving welfare: A quantitative analysis for Latin American and Caribbean developing countries. Heliyon, 9(10), 1-10. https://doi.org/10.1016/j.heliyon.2023.e20703
  49. Rehman, F. U., & Noman, A. A. (2020). Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index. Journal of Economic Studies, 48(7), 1346-1370. https://doi.org/10.1108/JES-03-2020-0123
  50. Riezdiani Restu Widyoningrum. (2023). Penyelesaian Sengketa Investasi Asing Melalui Mekanisme Arbitrase Internasional (Studi Kasus: Rafat Ali Rizvi Melawan Republik Indonesia). Student Research Journal, 1(3), 274-291. https://doi.org/10.55606/srjyappi.v1i3.339
  51. Salasa Gama, A. W., Yeni Astiti, N. P., & Eka Mitariani, N. W. (2023). Biased Behavior and Stock Investment Decisions of Investors in Bali, Indonesia. Matrik : Jurnal Manajemen, Strategi Bisnis Dan Kewirausahaan, 17(2), 123-135. https://doi.org/10.24843/matrik:jmbk.2023.v17.i02.p02
  52. Sardeshpande, M., & MacMillan, D. (2019). Sea turtles support sustainable livelihoods at Ostional, Costa Rica. ORYX, 53(1), 81-91. https://doi.org/10.1017/S0030605317001855
  53. Shenaan, M., & Schänzel, H. (2024). The Guesthouse Phenomenon in the Maldives – Development and Issues. Tourism Cases. https://doi.org/10.1079/tourism.2024.0010
  54. Siddiqi, S., Masud, T. I., Nishtar, S., Peters, D. H., Sabri, B., Bile, K. M., & Jama, M. A. (2009). Framework for assessing governance of the health system in developing countries: Gateway to good governance. Health Policy, 90(1), 13-25. https://doi.org/10.1016/j.healthpol.2008.08.005
  55. Sinclair-Maragh, G., & Gursoy, D. (2015). Imperialism and tourism: The case of developing island countries. Annals of Tourism Research, 50, 143-158. https://doi.org/10.1016/j.annals.2014.12.001
  56. Singh, A. S., Parahoo, S. K., Ayyagari, M., & Juwaheer, T. D. (2023). Conclusion: how could rural tourism provide better support for well-being and socioeconomic development? Worldwide Hospitality and Tourism Themes, 15(1), 84-93. https://doi.org/10.1108/WHATT-09-2022-0108
  57. Standar, A., Kozera, A., & Satoła, Ł. (2021). The importance of local investments co-financed by the european union in the field of renewable energy sources in rural areas of Poland. Energies, 14(2), 1-23. https://doi.org/10.3390/en14020450
  58. Sugozu, I. H., Yasar, S., & Verberi, C. (2023). The relationship between long-term portfolio investments and growth in the context of asset characteristics and development level. Borsa Istanbul Review, 23(1), 34-43. https://doi.org/10.1016/j.bir.2022.09.004
  59. Suryanta, B., & Patunru, A. A. (2023). Determinants of Foreign Direct Investment in Indonesia. Global Journal of Emerging Market Economies, 15(1), 109-131. https://doi.org/10.1177/09749101211067856
  60. Usman, U., Hafrida, H., Rapik, M., Maryati, M., & Sabri, A. Z. S. A. (2023). Radicalism in Indonesia: Modelling and Legal Construction. Journal of Indonesian Legal Studies, 8(2), 755-802. https://doi.org/10.15294/jils.v8i2.71520
  61. Wang, H., Liu, Y., Xiong, W., & Song, J. (2019). The moderating role of governance environment on the relationship between risk allocation and private investment in PPP markets: Evidence from developing countries. International Journal of Project Management, 37(1), 117-130. https://doi.org/10.1016/j.ijproman.2018.10.008
  62. Wang, H., Sun, X., & Shi, Y. (2024). Commercial investment in public–private partnerships: the impact of government characteristics. Local Government Studies, 50(1), 230-260. https://doi.org/10.1080/03003930.2023.2198217
  63. Warsame, A. A., Alasow, A. A., & Salad, M. A. (2024). Energy consumption and economic growth nexus in Somalia: an empirical evidence from nonlinear ARDL technique. International Journal of Sustainable Energy, 43(1), 1-14. https://doi.org/10.1080/14786451.2023.2287780
  64. Widiatedja, I. G. N. P., & Suyatna, I. N. (2022). Job Creation Law and Foreign Direct Investment in Tourism in Indonesia: Is It Better than Before? Udayana Journal of Law and Culture, 6(1), 62-82. https://doi.org/10.24843/UJLC.2022.v06.i01.p04
  65. Winarsi, S., & Moechthar, O. (2020). Implementation of The Law Principles of Good Corporate Governance in Indonesian Village-Owned Enterprise (BUMDes). Yuridika, 35(3), 635-656. https://doi.org/10.20473/ydk.v35i3.21637
  66. Yuanyuan, G. (2023). Long-Term-Oriented Cultural Value: Fundamental for Sustainable Development of Digital Government. International Journal of Information Systems in the Service Sector, 14(2), 1-15. https://doi.org/10.4018/IJISSS.313380
  67. Yue, W. (2022). Foreign direct investment and the innovation performance of local enterprises. Humanities and Social Sciences Communications, 9(1), 1-9. https://doi.org/10.1057/s41599-022-01274-6