Apindo Urges Government to Improve Investment Climate After MSCI Retains Indonesia's Status

The Indonesian Employers’ Association (Apindo) has urged the government to promptly improve the investment climate and business certainty to strengthen Indonesia’s appeal to investors, even as Morgan Stanley Capital International (MSCI) maintained the country’s capital market status in the emerging market category. Apindo Chairwoman Shinta Widjaja Kamdani stated that the business community views the MSCI assessment as just one indicator. She noted that there are still several areas requiring improvement to enhance Indonesia’s investment attractiveness. “I think we, as Indonesian entrepreneurs, cannot look at it solely from the MSCI factor. We are certainly grateful that we remain in the same position. But there are notes that need to be addressed,” Shinta said when met at the Menara Kadin Indonesia in Kuningan, South Jakarta, on Thursday (25/6/2026). She explained that the challenges facing Indonesia ahead are not only related to market perception but are also influenced by global geopolitical conditions that impact economic activity and investment in various countries. Therefore, Shinta emphasised that the government needs to continue maintaining the business climate through policies that can strengthen fiscal conditions, the manufacturing sector, and ease of doing business for entrepreneurs. In addition, she said, the rising costs of raw materials, logistics, and various other cost components also need attention because they affect the cost of doing business in Indonesia. “We also have to anticipate many things, including how we can maintain our fiscal and manufacturing sectors, and the ease of doing business in Indonesia. Then, we must pay attention to increasing costs, whether raw material costs, logistics costs, and others. This must be a concern regarding the rise in the cost of doing business,” she stated. Furthermore, she confirmed that the government is currently evaluating business governance in Indonesia. She asserted that this reform must continue because improving the investment ecosystem is far more important than merely maintaining a ranking. “So I think the rating is one thing, but improving the overall ecosystem must be the focus,” she said. Nevertheless, Shinta assessed that the government’s move to inject economic stimulus is the right policy to maintain people’s purchasing power amidst economic challenges. Shinta noted that the government has attempted to unravel various obstacles through the formation of a bottlenecking task force, deregulation, and the refinement of the risk-based licensing system via the Online Single Submission (OSS) platform. According to her, creating a more conducive and competitive business climate is a long-term task that must be carried out consistently. Despite the many challenges faced, she believes the government is beginning to address these issues in detail, one by one. “In my opinion, improving the business climate to make it more conducive and competitive is a continuous task. If asked what the problems are, certainly the challenges are many, but the solutions are now being addressed in detail, one by one,” she concluded.