Abstract. This quantitative research relates tax-incentive policy with investment-climate for foreign-invested
companies in textile industry by using the method of survey analysis. This research took samples by using
simple random sampling method. The result shows that the tax-incentive policy is not significantly related to
investment-climate of foreign-invested companies in textile industry in Indonesia. There are a lot of factors that
influence investment-climate, among others, the availability of cheap, professional experts, political stability, the
condition of market and its potential, macro-economic stability, the condition of infrastructure, legal certainty,
and the condition of bureaucracy, as well as the rate of corruption in Indonesia. Based on the analysis on the
research result, however, market access appears to be the significant factor that generates foreign investors in
textile industry in Indonesia.
