Bamsoet Proposes KADIN Become Non-State Budget Institution, Citing Reasons

The Vice Chairman for Politics and Security of the Indonesian Chamber of Commerce and Industry (KADIN) Indonesia, Bambang Soesatyo (Bamsoet), is pushing for an accelerated revision of Law Number 1 of 1987. This effort is aimed at restructuring the institutional relationship between the government and the business world. KADIN is projected to become a sui generis institution that is non-state budget (non-APBN) dependent, characterised by autonomy and independence.

The scope of movement for entrepreneurs needs to be strengthened from the planning stage to the execution of economic policies. KADIN should no longer merely serve as a messenger of aspirations, but rather as an official working partner for the commissions of the House of Representatives (DPR RI). The current economic situation is assessed to be vastly different from the era when the existing regulations were established.

“The KADIN Law was born in 198\7, when the economic, technological, and trade structures, as well as Indonesia’s relationship with the global economy, were very different from today. Therefore, the revision of the KADIN Law must be able to answer the needs of today’s business world while anticipating economic challenges for the next 20 to 30 years. KADIN must hold a strong position so that it can serve as a strategic partner to the government in building the national economy,” Bamsoet stated in his remarks on Wednesday (2/9/2026).

This was conveyed by Bamsoet during a Public Hearing (RDPU) with Commission VI of the DPR RI and KADIN Indonesia at the Parliament Complex, Jakarta, today. The meeting was also attended by the leadership of Commission VI of the DPR RI and the core management of KADIN.

During the agenda, Bamsoet outlined four main messages for the law revision, with the first focus on the development of MSMEs. The primary target is to encourage small-scale businesses to move up the value chain.

“Currently, the number of MSMEs in Indonesia is approximately 64.2 million units, contributing about 61.07 per cent to GDP and absorbing around 97 per cent of the workforce. However, we must not be satisfied with just the large number of MSMEs. The measure of MSME success is how many move up the ladder, possess legality, gain access to financing, enter industrial supply chains, utilise technology, obtain certification, and are able to sell their products to wider markets. Therefore, the KADIN Bill must pave the way so that entrepreneurs with a Business Identification Number (NIB) can enter the KADIN ecosystem and obtain access to training, mentoring, networks, and markets,” Bamsoet continued.

The next crucial issue highlights the creation of quality employment alongside the heavy influx of investment. Investment realisation for the first semester of 2026 was recorded at over Rp1,010.6 trillion. This fresh capital is expected to synergise directly with national industries and job seekers.

“The KADIN Bill must be able to strengthen the link between investment, national industry, MSMEs, and labour. Every investment that enters needs to create a multiplier effect for the domestic economy, ranging from the involvement of local suppliers and the capacity building of MSMEs to the use of Indonesian labour, as well as technology and knowledge transfer,” explained Bamsoet.

The third focus demands that the business ecosystem produces more new exporters. Indonesia faces a significant challenge in transforming its abundant natural resources into high-value-added products for the international market.

“Increasing the number of exporters must be a key indicator of the business ecosystem’s success. Processed food products, fashion, furniture, automotive components, digital products, creative industries, and downstream-based products have great opportunities to enter foreign markets. The government and KADIN need to assist entrepreneurs in understanding the standards of destination countries, certification, export financing, logistics, and brand protection, as well as opening access to business matching with foreign partners,” he added.

The final message reaffirms KADIN’s position as the primary umbrella for the business world and a strategic partner to the government. The authority and duties of this organisation must be formulated clearly without room for multiple interpretations. This preventive step is crucial for facing the dynamics and transformation of the global economy.

“The KADIN Law revision must look far into the future. We are entering an era of increasingly open economic competition, rapid digitalisation, changes in global supply chains, and competition for investment. Therefore, KADIN must be the collective strength of the business world to oversee MSMEs moving up the ladder, creating quality jobs, increasing exporters, and ensuring Indonesia has one strong and credible ‘big house’ for the business world,” he concluded.