The purpose of the research is to analyze and to examine the relationship between tax treaties and foreign direct investment (FDI) in Indonesia. Through 2012, Indonesia has conducted bilateral tax treaties with 60 partner countries. The fixed effects approach is used to test these relationships by using panel data. In addition, some dummy variables are included to capture the impact of tax trea- ties. The results showed that there are negative and positive relationships be- tween tax treaties and FDI. The results of this study showed that in the short term, there is a negative and significant rela- tionship, while in the medium and long term showed a positive and significant relationship.
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