Legal certainty and policy communication remain significant\nchallenges for the business world. Business actors are experiencing\ndifficulties in understanding the direction of government policy.<\/p>\n
The piece titled \u201cPolitical Risk, the Spectre of the Business World\u201d\n(Kompas, 10\/09\/2026) is deeply concerning. Our business sector is facing\npolitical risks that are becoming increasingly strong and\nwidespread.<\/p>\n
This does not only arise from direct government policies, but is also\nformed by the increasing uncertainty regarding policy direction,\ninstitutional stability, or the response of power to corporate\nperceptions.<\/p>\n
Bloomberg reported on Tuesday (08\/09\/2026) that Indonesia\u2019s\nwealthiest individuals have invested US$1.4 billion abroad. This\nrepresents a diversification of income sources into other currencies.\nOverseas investment is part of a broader trend of capital outflows from\nIndonesia. Investors withdrawing funds from Indonesia have also\npressured the rupiah exchange rate to its lowest position, triggering\nsell-offs in the stock market.<\/p>\n
Both the public and the Indonesian Government certainly have an\ninterest in attracting investment from any source into the country to\nbuild domestic supply chains. This would create many jobs, provide added\nvalue, generate ripple effects in the economy, and contribute to\nnational tax revenues.<\/p>\n
Legal certainty and policy communication remain challenges for the\nbusiness world in Indonesia. Some business actors are finding it\ndifficult to understand the direction of government policy.<\/p>\n
Rhenald Kasali from the Faculty of Economics and Business, University\nof Indonesia (FEB UI), stated that the government will be unable to\ndrive economic growth if it fails to attract foreign capital while\nsimultaneously ensuring that domestic capital remains and expands within\nthe country.<\/p>\n
One area that needs improvement is the negative perception held by\nsome government elites towards the business world. This affects\npolicymaking, thereby widening the trust gap between the government and\nthe business sector. Furthermore, inconsistent communication between\nministries further complicates these issues.<\/p>\n
The weakening of checks and balances between institutions makes the\ndirection of policy increasingly difficult to predict. This uncertainty\nresults in high business costs, preventing investment from reaching its\nmaximum potential. Consequently, the ability of the business sector to\ncreate jobs weakens, leading to increased unemployment.<\/p>\n
Do not underestimate the ongoing political risks here; the impact\nwill seep into all areas, ultimately making the welfare of the\nIndonesian people increasingly vulnerable.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/editorial-political-risk-1789404688", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }