Kadin to select new chairman amid global trade challenges

Kadin to select new chairman amid global trade challenges

Leony Aurora , The Jakarta Post, Jakarta

The Indonesian Chamber of Commerce and Industry (Kadin) is set to
select a new chairman later this week, as the business lobby
group struggles to deal with globalization challenges and
economic problems at home.

The election of the new Kadin chairman will be held at the end
of a two-day congress on Friday.

Businesspeople expressed hope that the forum would bring forth
a person with global views and a strong team on board, based on
competence, who could unite them.

"There are many business players who have never been involved
in Kadin, and this is the time to do that (become involved),"
Anton Supit, chairman of the Indonesian Poultry Breeders
Association, told The Jakarta Post on Tuesday.

Consolidation within Kadin is needed to deal with
globalization issues and to ensure that Kadin receives the full
support of the business community, he said.

Association of Indonesian Automotive Manufacturers (Gaikindo)
chairman Bambang Trisulo hopes that Kadin will be "led by a
person who understands global aspects and is able to maintain the
domestic market".

Three candidates, who currently head different divisions in
Kadin, are vying for the chairmanship. They are Mohamad Hidayat
of the real estate and construction division; Suryo Sulisto of
the promotion of trade tourism and investments division; and
Sharif Cicip Sutardjo of telecommunications, post services and
media division.

Whoever is chosen, he will lead the private sector in
preparing for the tougher business competition ahead of the
globalization and market liberalization drive. For example, the
economies of Southeast Asia will be integrated like the European
Community between 2010 and 2020. This era will see a free flow of
goods, services and labor within the Southeast Asian economies.

Therefore, economist Raden Pardede said that the biggest
challenge for Kadin was to survive the competition, especially
from foreign companies, and build a competitive edge for local
companies.

"Nowadays we go more toward the de-industrialization process,
doing more trade than production activities," he said, which at
the end would create fewer jobs for the ever growing workforce.

Apart from that, he urged Kadin officials to create better
communication with the government. "The policies of the
government should not contradict those of Kadin," he said.

Kadin is not only a counterpart of the government, but also of
foreign chambers of commerce, said Anton.

"The board should consist of business players who are capable
and internationally experienced," he said.

Only then would Kadin have a better bargaining position, when
the government and businesspeople were able to respect and listen
to it, he added.

Kadin is currently led by Aburizal Bakrie, a business mogul
who has had the seat for two five-year terms. Several committees
were formed during his period, namely the National Economic
Recovery Committee (KPEN) and the Regional Autonomy Watch
(KPPOD).

Business leaders along with the government established Kadin
in the early years of the New Order in 1968. In 1987, with the
enactment of Law No. 1/1987, all businesspeople, enterprises and
associations came under the auspices of Kadin.