Indonesian Political, Business & Finance News

Conduciveness as Infrastructure for Economic Trust

| Source: CNBC Translated from Indonesian | Economy
Conduciveness as Infrastructure for Economic Trust
Image: CNBC

Democracy provides space for the public to express aspirations, including through demonstrations. This freedom is an important part of national life and must be respected. However, democracy also carries a shared responsibility: ensuring that differences of opinion do not develop into disruptions that harm society and weaken economic activity.

Amid the recent dynamics of expressing aspirations, maintaining a safe and conducive situation is in the common interest. Conduciveness is not merely a security matter. It is one of the intangible infrastructures that underpins trust, business activity, investment, and job creation.

The economy does not operate solely through capital, labour, technology, and natural resources. The economy is also driven by expectations. Business actors make decisions based on beliefs about future conditions. When prospects and certainty are maintained, companies are more willing to expand, purchase machinery, open branches, increase production, and recruit workers.

Conversely, when uncertainty rises, economic decisions can be delayed. Companies adopt a wait-and-see position, households hold back consumption, and investors choose to park capital until conditions are deemed clearer. Therefore, stability and trust have real economic value.

Indonesia currently has momentum worth preserving. The national economy grew 5.29 percent year-on-year in the second quarter of 2026. Cumulatively, economic growth throughout the first half of 2026 reached 5.45 percent. This achievement demonstrates the resilience of the Indonesian economy amid global change and uncertainty.

Investment also continues to move. The Ministry of Investment and Downstreaming/BKPM recorded investment realisation in the first half of 2026 at approximately Rp1,010 trillion, or 49.5 percent of the annual target of Rp2,041.3 trillion. This investment generated direct absorption of around 1.45 million Indonesian workers, an increase of 15 percent compared with the same period the previous year.

These figures illustrate the important relationship between trust, investment, and jobs. Incoming capital is not merely a number in a government report. Behind it lies the construction of factories, the opening of business premises, demand for raw materials, contracts for suppliers, and employment opportunities for the public.

This momentum must not be disrupted by tensions that can actually be managed through communication and dialogue. The business world is highly sensitive to certainty. Disruptions to mobility, goods distribution, business district operations, and worker access can affect company decisions, especially if they occur over a prolonged period.

The impact of economic disruption also does not stop at large companies or foreign investors. The groups that feel it most quickly are those who live from daily income: street vendors, transport drivers, couriers, shop workers, culinary entrepreneurs, and various micro and small businesses.

MSMEs contribute more than 61 percent to Indonesia’s gross domestic product and absorb around 97 percent of the workforce. The scale of this contribution shows that safeguarding MSME activity means safeguarding the livelihoods of most Indonesians.

For a small stall, losing customers for one or two days is not merely a decline in sales statistics. It can affect the ability to buy raw materials, pay instalments, pay workers, and meet family needs. For daily workers, one day without activity can mean one day without income.

Therefore, expressing aspirations and the continuity of economic activity should not be positioned as two mutually exclusive choices. The public retains the right to voice criticism, while the government has an obligation to listen and respond. At the same time, all parties need to ensure that economic activity, goods distribution, transport, and public services continue to function.

Healthy stability is not a state without criticism. Solid stability is born precisely when the public believes that their aspirations can be conveyed, the government is willing to listen, the authorities act proportionately, and the business world obtains certainty. Conduciveness built solely by restricting voices will be fragile. Conversely, freedom that ignores order can also harm the wider public.

Indonesia needs a balance between the two. The government needs to open dialogue channels that are fast, substantive, and trustworthy. Aspirations raised in demonstrations need to be sorted based on their substance, then answered through explanation, evaluation, or policy correction where necessary.

Those expressing aspirations also need to ensure that demonstrations take place peacefully, in an orderly manner, and without disturbing the rights of other citizens. Criticism will gain stronger legitimacy when delivered with data, argumentation, ethics, and alternative solutions. Violence or vandalism can actually obscure the message being fought for.

From the business side, HIPMI considers it important to have an economic communication mechanism when social dynamics occur. Central and regional governments can establish information centres that provide updates on distribution routes, access to business areas, public transport, and the state of public services. Fast and accurate information will prevent panic and reduce the spread of unverified news.

The government also needs to ensure protection for directly affected MSMEs. If business activity is significantly disrupted, consideration can be given to relaxing levy payments, restructuring short-term credit, easing distribution, or facilitating digital marketing. Such policies do not mean the government is eliminating risk.

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