1. What causes Capital Flight to happen?

Answer
One of the main reasons which is strongly suspected is the source of its occurrence
capital flight, namely interest rates in developing countries that are unrealistic and
often accompanied by volatile currency rates. In other words, for
inhibiting capital flight abroad, determining internal interest rates
the country must take into account foreign interest rates and rate estimates
depreciation of the domestic currency against foreign currencies. Another cause
the occurrence of capital flight, namely inflation which has implications for distrust
investors to invest in a country. If there is inflation,
then the owner of the capital will invest his capital abroad so that it will
causing an increase in capital flight.

2. Do you think it is better for the government to have more FDI (Foreign Direct Investment)
than FPI  (Foreign Portfolio Investment)?
Answer:
In my opinion, the government should have more FDI (Foreign Direct Investment) than FPI
(Foreign Portfolio Investment). This is because FDI provides more value than FPI for the
government because FDI can have a direct impact on workers because companies have to
invest for a long time, such as relocating their factories or expanding their branches.
FDI involves long-term investment. For example, the establishment of factories and
subsidiaries in other countries. Hence, such investments can be very difficult to liquidate in a
short period of time.
Due to the negative impact caused by capital flight, most countries prefer foreign direct
investment (FDI) to foreign portfolio investment (FPI).

Source: ADBI4201
https://jurnal.untirta.ac.id/index.php/Ekonomi-Qu/article.