Foreign investment has become an important aspect in international economic system. Liberal perspective believe that investment is one of the most important factor in economic development. Investment not only bring benefits to donor country but also to recipient country. One of the most successful country which develop their economic level with investment method is Japan. Japan has expanded their investment in almost over the world, include Indonesia. Now Indonesia become one of the most important partner for Japan to develop their economic growth. In the other side, Japan has an important role in Indonesia development. The purpose of this research was to explain the effect of Japan foreign investment towards Karawang regency development.