KADIN: Investors Need Certainty More Than Calm
The Indonesian Chamber of Commerce and Industry (KADIN) views regulatory certainty as the main factor in maintaining investment flows, asserting that investors need certainty more than calm to conduct business.
KADIN Indonesia Chairman Anindya Novyan Bakrie stated that he has visited several national industrial zones heavily populated by Chinese investors to discuss the current conditions. “They said they do not care about the noise or commotion regarding policies. For foreign direct investment, it is not about calm, but about certainty,” he said during the inauguration of the KADIN NTB board in Mataram on Wednesday.
Anindya noted that Indonesia’s competitiveness remains highly attractive to investors because production costs are one-third of those in China, while still providing access to international markets, including the United States. He asked KADIN NTB and the NTB provincial government to continue convincing potential investors that the current challenges are part of a transition process towards a better investment climate. “It is impossible to develop without facing challenges, and opportunities lie behind those challenges,” Anindya said.
He further emphasised that KADIN must take on the role of an investment catalyst, both for domestic investment (PMDN) and foreign investment (PMA), while serving as a bridge between the business community and the government. KADIN is also expected to be an accelerator for micro, small, and medium enterprises (MSMEs) to help them upgrade through financing assistance, halal certification, improved digital literacy, and expanded market access. “KADIN must also act as a guardian to create jobs,” he stressed.
KADIN is a business organisation established under Law Number 1 of 1987. It represents 50,000 upper-middle-class constituents and 60 million MSME and cooperative entrepreneurs. Anindya revealed that approximately 92 percent of Indonesia’s gross domestic product (GDP) is supported by business activities, while government spending contributes only around 7 percent. “We continue to strive to contribute to the Indonesian economy,” he concluded.