Kadin ready to collaborate to strengthen export governance to boost the economy

Kadin Indonesia says it is ready to collaborate with the government in implementing a governance framework for exports of natural resource commodities to spur stronger and more sustainable national economic growth. Kadin Chairman Anindya Bakrie said in a Jakarta statement on Thursday that they understand the government’s intention to ensure Indonesia’s natural wealth benefits the people through the issuance of a Government Regulation (PP) on the Governance of Export of Natural Resource Commodity (SDA). However, he noted that policy implementation should be carried out through intensive dialogue with business players. ‘Kadin is ready to be a partner with the government in formulating the implementation of this policy so that its aims are achieved, namely increasing state revenue, safeguarding foreign exchange, improving governance, while ensuring the business world can still operate well,’ Anindya said. The statement was delivered as a form of appreciation by Kadin for the President’s remarks in a DPR plenary session coinciding with National Awakening Day at the DPR in Jakarta on Wednesday (20/5). Kadin believes the President’s speech provided clear direction for national economic development, fiscal strengthening, industrialisation, governance of natural resource wealth, and protection of the business world. ‘Kadin appreciates President Prabowo Subianto’s speech. The message is very clear: the state must be present, the economy must be people-friendly, but the business world also must be given space to grow, invest, and create jobs,’ Anindya said. He added that strengthening governance and eradicating practices harmful to the business world are fundamental foundations for national economic growth. Kadin supports steps to improve the investment climate and root out extortion and smuggling. ‘Kadin fully supports the President’s efforts to improve the investment climate, governance, and eradicate corruption. The business world needs clear, fair, and non-discriminatory rules. Extortion, red tape in licensing, smuggling, under-invoicing, and fraudulent practices must be eradicated because they harm the state and law-abiding businesses,’ he emphasised. Kadin also regards strengthening the manufacturing sector and downstreaming as strategic steps so that Indonesia is not merely a market for products from other countries. The business world is ready to support strengthening national manufacturing, developing young entrepreneurship, financing for MSMEs, and import substitution. In addition, Kadin says it is ready to support various priority government programmes such as downstreaming of natural resources, food security, the development of coastal villages, strengthening domestic energy, and the ‘Free Nutritious Meals’ programme. According to Kadin, these programmes can become engines of people’s economy if implemented with good governance and involving national business players. Anindya stressed that Kadin will continue to be a constructive partner of the government in supporting policies that strengthen the national economy. President Prabowo Subianto, in the DPR plenary session at the Nusantara Building, MPR-DPR-DPD complex in Jakarta, announced that the government has issued the Government Regulation on the Governance of Export of Natural Resource Commodities. In the PP, one rule is that state-owned enterprises (BUMN) become sole exporters for commodities such as palm oil, coal, and ferro alloys. ‘To achieve the goals of the nation, today the Government of the Republic of Indonesia that I lead issued a Government Regulation on the Governance of Export of Natural Resource Commodities. Issuing this government regulation is a strategic step to strengthen the governance of our natural resource export commodities,’ President Prabowo Subianto said in delivering the Macro Economic Framework and the Main Policy of Fiscal (KEM-PPKF) RAPBN 2027 at the DPR plenary session at Nusantara Building, Jakarta, on Wednesday (20/5).