Kadin Indonesia Says Security Set to Stabilize as Business Seeks Rapid Normalization
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JAKARTA, Investortrust.id — The Indonesian Chamber of Commerce and Industry says security conditions are set to stabilize, as President Prabowo Subianto instructs the national police and armed forces to act firmly against rioters on Monday, Sep 1, 2025, and the business community mobilizes to restore normal operations to safeguard investment, jobs, and price stability.
Kamar Dagang dan Industri Indonesia (Kadin) said it stood ready to work with the government and law enforcement to re-establish a safe operating environment so companies could resume production and logistics at full capacity. The group warned that extended disruption would raise distribution costs and feed inflation pressures, particularly on food and essential goods.
In a virtual dialogue with extraordinary members representing 200 affiliated associations on Monday, Kadin Chairman Anindya Novyan Bakrie said the president’s firm message had calmed executives and workers who faced intimidation, damaged facilities, and logistics bottlenecks following violent incidents at recent demonstrations. He added that companies had already been grappling with higher taxes and slow investment licensing, and that the security shock compounded supply-chain stress.
Anindya said the call from associations was clear: consistent law enforcement against perpetrators of violence, stronger and more timely official information to counter social-media rumors, and concrete facilitation from ministries and regional governments so factories, warehouses, ports, and retail distribution nodes could operate safely. He emphasized that drivers had avoided routes viewed as risky, leaving factories short of inputs and shops short of inventory, a combination that typically pushes up prices.
Kadin also flagged the implications of temporary work-from-home guidance. While remote work can be useful for safety, many roles require physical presence, and fear of commuting had cut income for micro and ultra-micro businesses and ride-hailing drivers, especially in Greater Jakarta and other major cities.
Supply chains under strain, prices at risk
The chamber’s assessment from Monday’s coordination call was that fear, rather than physical damage alone, had begun to slow transport flows. Truck drivers reported avoiding certain corridors, retailers struggled to receive restocks, and manufacturers faced shortages of raw materials and components. In such circumstances, businesses typically shift to smaller, more expensive shipments, which lifts costs and can transmit to consumer prices if not addressed swiftly.
Kadin said the primary task for authorities and industry was to reduce uncertainty by visibly securing distribution nodes and transport corridors, prioritizing food and fuel logistics and key industrial inputs. Clear and consistent updates from police and regional commands would help companies make accurate operational decisions and avoid over-reactions to unverified posts.
On Sunday, Aug 31, 2025, Anindya also convened a call with 38 provincial Kadin leaders to expand communication with central and local governments, security agencies, student leaders, and business partners across regions. He stressed that business did not operate in the political domain but depended on political and security stability to keep trade, investment, and regional economies moving.
The chamber said it would encourage members to maintain investment and trade activity where possible, while requesting targeted protection for plants, warehouses, and distribution hubs that must operate on-site. It also urged ministries and local authorities to fast-track troubleshooting at ports, industrial estates, and retail logistics centers to minimize backlogs.
Kadin noted the outsized economic effect on small merchants and daily earners when footfall declines, arguing that restoring mobility safely was as important as supporting factories. The group called for joint action to stabilize prices through improved distribution and, where needed, direct market interventions.
What business asked for: law enforcement, price relief, and faster permits
Anindya said associations asked Kadin to press for strict action against rioters and for a review of policies that have raised the cost of doing business during a period of weaker household purchasing power. Executives highlighted the need to revisit select taxes, import duties, and energy tariffs to protect competitiveness while the economy absorbs the shock.
They also urged more predictable and faster investment licensing through the Investment Coordinating Board, arguing that clear timelines and coordination among line ministries were critical to unlock projects and employment. The chamber proposed a near-term meeting with Investment Minister and BKPM Head Rosan Roeslani, who also leads Danantara, to ensure investment pipelines progressed without avoidable delays.
To cushion households and cool prices, Kadin pledged to partner with the Home Affairs Ministry and regional governments on market-operation programs that sell food staples at lower prices. The chamber framed this as both a practical stabilizer and a signal of business solidarity with communities during a tense period.
Kadin further asked its national and provincial boards, along with member associations, to act as partners to the state in maintaining economic resilience. The chamber asked leaders to keep close contact with their constituents to sustain internal cohesion and external collaboration.
The chamber cautioned that security instability had already weighed on investment, production, and trade, narrowing companies’ capacity to meet obligations to the state, employees, and society. With provincial minimum-wage agreements for 2026 due in October 2025, firms said they needed policy support to manage through global uncertainty and soft domestic demand.
Six near-term priorities from Kadin’s coordination
From Monday’s coordination, Kadin outlined six immediate priorities. First, keep investment and trade moving even under temporary remote-work advice, with tailored protection for on-site manufacturing and logistics. Second, intensify dialogue between Kadin and leaders of government institutions, law enforcement, and legislatures to accelerate the return of security stability. Third, work with the Home Affairs Ministry and local authorities on market operations for affordable rice and other staples to cool prices and demonstrate social responsibility.
Fourth, sustain investor confidence by genuinely smoothing licensing at BKPM and coordinating with line ministries to prevent bottlenecks or unauthorized charges. Fifth, strengthen the role of Kadin’s central and regional bodies and all member associations as partners in national economic resilience, maintaining steady communication across the business community. Sixth, reassess cost pressures—including taxes, import duties, and energy prices—so the burden is proportionate and competitiveness is preserved under an “Indonesia Incorporated” approach.
Anindya underscored that these steps were designed to restore predictability quickly, which is the single most important ingredient for companies to plan production, hire workers, and keep prices in check. He said Kadin would immediately relay industry concerns to the government and the security apparatus and stand ready to coordinate field-level support where needed.
The coordination call included Vice Chairman for Organization and Communications Erwin Aksa, Indonesian Exporters Association chairman Benny Soetrisno, Indonesian Employers Association chair Shinta Widjaja Kamdani, Gapopin chairman Soelianto, Inkindo chair Erie Heryadi, APBMI chair Juswandi, Aspaki secretary-general Erwin Hermanto, Indonesian Logistics and Forwarders Association national board member Harry Sutanto, APMI secretary-general Budi Prakosa, and Indonesian Food and Beverage Producers Association chairman Adhi S. Lukman, among other leaders from logistics, manufacturing, and retail.
Kadin reiterated that accurate information and clear security guarantees at every distribution node and production center would help executives make sound operational decisions, reduce rumor-driven stoppages, and bring supply chains back to normal. The chamber said this was the fastest route to stabilize prices and protect household purchasing power in the coming weeks.
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