KADIN Survey: Policy Certainty is Key to Business Improvement - BCA Securities

The Kadin Indonesia Institute survey shows that central government policy is one of the primary factors that business actors expect to support the improvement of their business conditions in 2026.

“We asked what makes you believe that business conditions will develop in the following month, in the third quarter of 2026; the answer was that most of them believe central government policy is the most important factor,” said Fakhrul Fulvian, Director of Insight at the Kadin Indonesia Institute, during a webinar held by the Kadin Indonesia Institute alongside APF Canada in Jakarta on Tuesday.

He stated that central government policy has a significant impact, particularly for small and medium-sized enterprises. In the second quarter of 2026, 16.4 per cent of business respondents stated that business development issues still lie within bureaucracy, followed by the influence of government policies and programmes at 14.8 per cent, and market demand challenges.

For large companies, the progress of their business development depends on international collaboration and investment, using global market trends as a reference for business expansion.

Fakhrul noted that 33.7 per cent of respondents also responded that uncertain economic policy directions from the government determine the business policy risks they will face, followed by weakening domestic demand and the importance of Rupiah stability in restoring business and customer confidence.

“The weakening of the Rupiah exchange rate remains a challenge for business actors. As many as 35 per cent of respondents assessed that the depreciation of the Rupiah has a somewhat negative impact on business, while 30 per cent assessed it as negative,” said Fakhrul.