Kadin sees easing geopolitical pressures accompanied by positive sentiment towards Indonesia
Indonesia is transforming from a natural resources-based economy to a human resources-based one.
The Indonesian Chamber of Commerce and Industry (Kadin) assesses that the easing of global geopolitical pressures is being accompanied by positive sentiment towards Indonesia.
Kadin Indonesia Chairman Anindya Bakrie stated that throughout the second quarter of 2026, the business community faced various challenges, ranging from geopolitical uncertainty due to conflicts in the Middle East, pressure on the rupiah exchange rate, regulatory certainty, public purchasing power, to rising energy costs.
According to an official statement received and cited in Jakarta on Friday, Indonesia is currently entering a phase of economic transformation from a natural resource-based economy to a human resource-based economy.
This is the result of Kadin’s Business Pulse survey for the second quarter of 2026, an instrument published regularly each quarter to capture business conditions and provide input for the government in formulating economic policy.
“Indonesia is transforming from natural resources-based to human resources-based. In every transition, there are challenges, so we must prepare to improve the quality of our human resources,” said Anindya.
Anin, as he is familiarly known, said the Business Pulse serves as a dashboard for the business community to view various economic indicators, from business conditions, regulations, and bureaucracy to government policies and public purchasing power.
The survey also covers business actors of various scales, from micro, small, and medium enterprises (MSMEs) to large corporations.
Furthermore, Anin assessed that global investors’ attention towards Indonesia is no longer focused on the sheer size of its economic potential, but rather on the country’s ability to implement various policies.
He said this situation actually encourages Kadin to be more active in visiting regions to strengthen communication with business actors while conveying information and policy advocacy.
Anin stressed that Indonesia’s economic fundamentals remain strong amidst various global challenges. He is optimistic that Indonesia’s economic growth can be maintained at around 5 per cent in 2026.
“Inflation is also under control and the debt-to-GDP ratio is one of the best in the G20,” said Anin.
On the other hand, Anin assessed that the business community needs to adapt to the new global economic order (new equilibrium). This condition must be faced realistically while maintaining optimism.
“This is a new equilibrium. We certainly want the rupiah to strengthen and interest rates to fall, but we must also look at the situation as it is with a cool head. Usually, after one to three years, when confidence returns, the situation will reverse,” said Anin.
Therefore, Anin encouraged business actors to continue improving efficiency, accelerating technology adoption, maintaining employment, and expanding export markets by utilising various international trade agreements.