This thesis tries to explain why Indofood with its leading product Indomie, invested its capital in Serbia. Indomie as one of Indonesia's leading product owned by PT. Indofood CBP Sukses Makmur Tbk. is a favorite and highest purchased product domestically. Furthermore, Indomie has also spread in 80 countries and has several factories abroad. Indofood sees conditions in the European region as a potential market. In order to facilitate the distribution of Indomie products to the European market, it is necessary to build a factory in one of the European country. Serbia as one of the countries in Europe that supports Indofood's foreign direct investment in its country, becomes a consideration by the company. Using Michael E. Porter's concept of Competitive Advantage and Stephen D. Cohen's 4 concepts namely Market- Seeking, Efficiency-Seeking, Resource-Seeking, and Strategic Asset- Seeking, Indofood's decision to invest their capital in Serbia was based on incentives provided by Serbia for investment and entry points to enter the European market as the company's initial destination.