Kadin: Majority of Industries Undertake Efficiency Measures Due to War Impact

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Novyan Bakrie, stated that the majority of business actors or industries are choosing to implement efficiency measures gradually in the face of increasingly uncertain global conditions. This is reflected in Kadin’s Q1-2026 Business Pulse survey. “From the business perspective, they are choosing to pursue efficiency to quickly return to growth,” Anindya said in Jakarta on Friday, 24 April 2026, quoted from an official statement.

Based on the Kadin survey, 33.9 percent of respondents opted for operational cost efficiency. Thus, the current primary priority for companies is not expansion, but rather maintaining cash flow health and business stability.

Meanwhile, 29.3 percent of respondents have not yet or are not taking specific steps. This large proportion indicates that many business actors are still inclined towards a wait-and-see approach.

Additionally, 9.9 percent of respondents chose to diversify trading partners; 9.5 percent reviewed business contracts and supply chains; 7.1 percent diversified raw material sources; 6.4 percent shifted focus to domestic demand; and 3.9 percent hedged assets or currencies.

According to Anindya, the conflict in the Middle East has a significant impact on many countries, including Indonesia. “The most felt impact is the rise in fuel prices, which then spills over into increased operational costs. However, this situation is not matched by an increase in purchasing power because liquidity is currently very tight,” he said.

Based on the Kadin survey, 20.9 percent of respondents stated that the main impact felt from the geopolitical situation is the surge in energy and commodity prices. This is followed by a decline in market demand at 16.2 percent; depreciation of the rupiah exchange rate at 16.2 percent; increased operational business risks at 11.8 percent; uncertainty in global policy or markets at 11.5 percent; and disruptions to the global supply chain at 10.9 percent.