The Indonesian Chamber of Commerce and Industry (Kadin) recently concluded its 2nd National Leadership Meeting (Rapimnas II) on Monday, December 1st, and Tuesday, December 2nd. During this pivotal event, Kadin formulated a comprehensive set of observations and recommendations designed to support and guide the incoming administration of President Prabowo Subianto.
These significant inputs from Kadin cover a wide array of crucial economic areas. They include strategies for overcoming investment barriers, invigorating labor-intensive industries, fostering innovation through robust incentives, empowering micro, small, and medium enterprises (MSMEs), and ensuring the steadfast commitment of entrepreneurs to the development of new and renewable energy (NRE).
The meeting saw an impressive turnout of 1,653 members, comprising representatives from Kadin’s central board, regional executives, and leaders of various associations. The overarching theme for Rapimnas II, “Kadin Working Together to Expand Employment for Indonesia’s Welfare and Independence,” underscored the organization’s dedication to national prosperity.
“This Rapimnas has produced policy recommendations that will be formalized into a policy brief, which we will then present to Mr. President,” stated Kadin Chairman Anindya Bakrie in a written statement released on Tuesday, December 2nd.
The first key observation and recommendation highlights Kadin’s strong optimism for the national economy, projecting growth to exceed 5.5% in the coming year. Furthermore, Kadin identified six out of the government’s eight priority agendas as “quick wins,” emphasizing their potential for rapid implementation and immediate impact.
These designated “quick wins” encompass critical programs such as the Free Nutritious Meals (MBG) initiative, strategic deployment of migrant workers, the renovation and construction of 3 million homes, provision of free health checks, implementation of paid internships, and the establishment of Red and White Cooperatives, all aimed at fostering direct benefits for the populace.
Secondly, Kadin placed a strong emphasis on the imperative of job creation. Anindya Bakrie affirmed Kadin’s unwavering commitment to collaborate closely with the government to generate substantial employment opportunities across the nation.
The third observation addresses the critical need for ease of investment across diverse sectors. Kadin emphasized that Indonesia urgently requires increased capital investment, particularly in vital areas such as agriculture, energy, industry, trade, the creative economy, tourism, and cutting-edge artificial intelligence (AI).
Anindya elaborated that facilitating investment is now more crucial than ever, especially since the Ministry of Finance has injected an additional Rp 276 trillion in liquidity into the market. “Liquidity is no longer the issue. The challenge now lies on the demand side,” he noted, signaling a shift in economic focus.
To ensure the smooth realization of investments, Anindya underscored the necessity for robust industrial and land dispute resolution mechanisms, attractive tax holidays for medium-scale investments, and absolute certainty regarding Environmental Impact Assessments (AMDAL).
Fourthly, Kadin strongly advocated for the vigorous promotion of labor-intensive industries and accelerated digitalization. These initiatives are considered integral to the broader strategy of downstream industrial acceleration across various economic sectors.
The fifth recommendation focuses on enhancing worker productivity through comprehensive training and education programs. Kadin specifically called for the integration of integrity education, believing it is vital to cultivate a strong and ethical work ethos among the Indonesian workforce.
Sixth, Kadin urged the boosting of innovation by providing strong incentives for research and technology development, alongside fostering collaborative research efforts with the National Research and Innovation Agency (BRIN).
“The LPDP (Indonesia Endowment Fund for Education) should be better aligned with the skill requirements of national industries,” Anindya stated, highlighting the need for educational programs to meet market demands.
Seventh, Kadin outlined several measures to enhance trade, including fortifying trade remedies, refining import governance, and simplifying both export and import licensing procedures to streamline international commerce.
Additionally, Kadin expressed a desire for enhanced mentorship and support for MSMEs to effectively leverage free trade agreements (FTAs), actively participate in trade diplomacy, and enthusiastically contribute to the “Proud of Indonesian Products” campaign.
The eighth recommendation advocates for the active involvement of MSMEs in various government programs, ranging from the Free Nutritious Meals initiative to the 3 million homes project. This is justified by the remarkable fact that small businesses absorb 98% of Indonesia’s workforce and contribute a significant 60% to the nation’s Gross Domestic Product (GDP).
The ninth crucial observation and recommendation involves Kadin’s keen interest in actively participating in the development of new and renewable energy (NRE). This commitment extends to engaging in the construction of power plants utilizing hydropower, geothermal energy, and solar power.
Finally, Kadin expressed its commitment to a significant social contribution: building bridges to improve accessibility for children in remote areas who must cross rivers for their daily commute. The funding for this impactful initiative will be sourced from corporate social responsibility (CSR) programs.
“There are approximately 300,000 bridges that need to be constructed, with costs ranging from Rp 200 million to Rp 800 million per bridge,” Anindya revealed, underscoring the scale of this essential infrastructure development.
Summary
The Indonesian Chamber of Commerce and Industry (Kadin) concluded its 2nd National Leadership Meeting (Rapimnas II), formulating comprehensive observations and recommendations for the incoming Prabowo Subianto administration. These vital inputs cover investment barriers, labor-intensive industries, innovation, MSME empowerment, and new & renewable energy (NRE) development. Kadin projected national economic growth exceeding 5.5% and identified six government priority agendas, including the Free Nutritious Meals (MBG) initiative, as “quick wins” for rapid implementation.
Kadin strongly emphasized job creation and the imperative of easing investment across various sectors like agriculture and AI. The organization also advocated for promoting labor-intensive industries, digitalization, and enhancing worker productivity through training and incentives for innovation. Furthermore, Kadin committed to enhancing trade, ensuring active MSME involvement in government programs, and participating in NRE development, alongside a social contribution of building bridges in remote areas.
