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.