Latest news with #IndonesianChamberofCommerceandIndustry
Barnama
25-05-2025
- Business
- Barnama
Indonesia's Prabowo Hails China's Support For Palestine
JAKARTA, May 25 (Bernama) -- Indonesian President Prabowo Subianto praised China's support for developing nations and its long-standing advocacy for the Palestinian cause. 'To this day, China's leadership - particularly in defending the rights of the Palestinian people - remains an inspiration to us all,' he said during the Indonesia–China Business Reception 2025, held in Central Jakarta on Saturday evening. The event, hosted by the Indonesian Chamber of Commerce and Industry (KADIN), was attended by Chinese Premier Li Qiang, who arrived in Indonesia on Saturday for a three-day official visit. Prabowo also emphasised the strategic importance of Indonesia's partnership with China, calling the relationship crucial for safeguarding regional peace and stability. 'The relationship between Indonesia and China is highly strategic, deeply important, and greatly promising, with the potential to shape the course of peace and stability throughout our region,' he said. Prabowo praised China's ancient civilisation and enduring cultural values, highlighting its emphasis on 'the common good, mutual benefit' and its pursuit of peace and harmony. He acknowledged China's historical support for global liberation movements, even during its own early stages of development, and expressed admiration for Beijing's ongoing opposition to oppression, imperialism, colonialism, and apartheid. In official remarks released by the Presidential Secretariat, Prabowo reaffirmed his commitment to safeguarding and advancing progress in bilateral relations. He called for broader cooperation beyond trade to include education, healthcare, tourism, and scientific research.
Business Times
19-05-2025
- Business
- Business Times
Indonesia wages war on extortion that threatens to derail investor confidence
[JAKARTA] Indonesian police have officially named suspects in a major extortion case that has shaken the country's investment community to its core, marking a crucial step in the government's intensified crackdown on thuggery, illegal levies and intimidation targeting businesses. On Saturday (May 17), the authorities identified three individuals suspected of orchestrating extortion demands linked to the multitrillion-rupiah chlor-alkali plant project in Cilegon, owned by Chandra Alkali, a subsidiary of petrochemical giant Chandra Asri. Among the suspects are two prominent figures affiliated with the Cilegon branch of the Indonesian Chamber of Commerce and Industry, as well as one from a local fishermen's association. The extortion attempt, which went viral on social media, reportedly involved demands for a project share worth five trillion rupiah (S$393 million) outside the official tender process, shining a harsh light on persistent rent-seeking practices that continue to undermine Indonesia's investment climate. Chandra Alkali is developing the 15 trillion rupiah project in partnership with Chinese contractor Chengda Engineering. Located in the industrial city of Cilegon, about two hours from Jakarta, the project is seen as a key part of Indonesia's downstreaming push. The project was granted national strategic project status earlier this year, meaning it receives priority treatment and legal backing from the government. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Combat on thuggery The Indonesian government has pledged to take firm action against extortion and illegal levies that continue to plague the country's investment climate, in a bid to boost investor confidence and accelerate economic growth. President Prabowo Subianto last week instructed law enforcement authorities to take firm action against all forms of extortion and illegal levies targeting businesses, particularly in strategic sectors such as manufacturing, mining and infrastructure. According to Deputy Investment Minister Todotua Pasaribu, the president emphasised that all extortion cases must be treated with utmost seriousness and resolved thoroughly by the appropriate authorities. This statement came after officials held a meeting with Chandra Asri, which was targeted by alleged extortion attempts from local contractors last week. 'Any form of interference, especially one that disrupts the investment climate in this country, will be subject to investigation and legal action,' Pasaribu said, as reported by the Antara news agency. The country's police chief Listyo Sigit Prabowo said his office had issued an official directive to launch an intelligence-driven crackdown on thuggery. He also urged investors to report any acts that hinder investment activities directly to the police. Tip of the iceberg The extortion case involving the Chandra Asri group is not an isolated incident. Indonesian police report having resolved more than 3,300 cases of thuggery since launching a nationwide crackdown in early May targeting rogue actors operating under the guise of civic organisations. Another reported case of intimidation and coercion involves the high-profile investment by Vietnamese electric vehicle manufacturer VinFast. The issue came to light after deputy speaker of the People's Consultative Assembly, Eddy Soeparno, received complaints from investors during a visit to the VinFast site last April as reported by Kompas. The electric car maker is developing a 170-hectare assembly plant in Subang, West Java, with an investment valued at four trillion rupiah. Incidents of intimidation and extortion have increasingly affected small-scale business owners across various regions, posing additional challenges for local entrepreneurs and hindering grassroots economic growth. Business groups have long called for reforms to address security issues and reassess the role of mass organisations, which have repeatedly been cited as a source of concern for investors. Shinta Kamdani, chairperson of the Indonesian Employers' Association, told The Business Times that extortion by rogue elements within these organisations not only affects individual companies, but also risks damaging Indonesia's overall competitiveness as an investment destination. 'Disruptions caused by such actions can lead to higher business costs, increase uncertainty, and undermine investor confidence in placing capital in Indonesia.' The country is home to more than 550,000 mass organisations, or ormas – civil society groups recognised under Indonesian law and registered with the Ministry of Home Affairs. These organisations, some backed by public funds and government grants, were originally founded as pillars of community engagement, designed to foster public participation and support national unity and development. However, their role in shaping Indonesia's investment climate has been mixed – while some have played constructive roles, others have been linked to disruptive practices that undermine investor confidence. Stumbling block The controversy comes at a critical time as Prabowo intensifies efforts to attract both domestic and foreign investment, with the goal of creating more than three million jobs through industrial development, and steering South-east Asia's largest economy towards his ambitious 8 per cent growth target. Wijayanto Samirin, an economist at Paramadina University, said that intimidation has long been a persistent complaint among national businesspeople. However, the recent scandals come at a high-stakes time when Indonesia is already on a knife's edge, struggling with an early wave of de-industrialisation and layoffs. 'It is also happening while Indonesia competes with Vietnam, India and Thailand to attract the relocation of Chinese industries seeking new investment destinations to avoid (US President Donald) Trump's tariffs,' he told BT. Indonesia is targeting to attract investment exceeding 13,000 trillion rupiah by 2029, reflecting its ambitious commitment to drive sustained economic growth and development over the coming years. Observers said maintaining a strong foundation of legal certainty is essential to building and sustaining investor confidence over the long term. Professor Didik Rachbini, senior economist at the Institute for Development of Economics and Finance, said the Indonesian government must enforce the law consistently and indiscriminately on the ground. 'The government has no other option, it must act decisively, period. Indonesia must take firm steps to eradicate extortion, thuggery and other security threats that hinder investment activity,' he said. 'If not, the consequences could be critical for the investment climate, the economy, employment opportunities and public income.'
Business Times
19-05-2025
- Business
- Business Times
Indonesia wages war on extortion threatening to derail investor confidence
[JAKARTA] Indonesian police have officially named suspects in a major extortion case that has shaken the country's investment community to its core, marking a crucial step in the government's intensified crackdown on thuggery, illegal levies and intimidation targeting businesses. On Saturday (May 17), the authorities identified three individuals suspected of orchestrating extortion demands linked to the multitrillion-rupiah chlor-alkali plant project in Cilegon, owned by Chandra Alkali, a subsidiary of petrochemical giant Chandra Asri. Among the suspects are two prominent figures affiliated with the Cilegon branch of the Indonesian Chamber of Commerce and Industry, as well as one from a local fishermen's association. The extortion attempt, which went viral on social media, reportedly involved demands for a project share worth five trillion rupiah (S$393 million) outside the official tender process, shining a harsh light on persistent rent-seeking practices that continue to undermine Indonesia's investment climate. Chandra Alkali is developing the 15 trillion rupiah project in partnership with Chinese contractor Chengda Engineering. Located in the industrial city of Cilegon, about two hours from Jakarta, the project is seen as a key part of Indonesia's downstreaming push. The project was granted national strategic project status earlier this year, meaning it receives priority treatment and legal backing from the government. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Combat on thuggery The Indonesian government has pledged to take firm action against extortion and illegal levies that continue to plague the country's investment climate, in a bid to boost investor confidence and accelerate economic growth. President Prabowo Subianto last week instructed law enforcement authorities to take firm action against all forms of extortion and illegal levies targeting businesses, particularly in strategic sectors such as manufacturing, mining and infrastructure. According to Deputy Investment Minister Todotua Pasaribu, the president emphasised that all extortion cases must be treated with utmost seriousness and resolved thoroughly by the appropriate authorities. This statement came after officials held a meeting with Chandra Asri, which was targeted by alleged extortion attempts from local contractors last week. 'Any form of interference, especially one that disrupts the investment climate in this country, will be subject to investigation and legal action,' Pasaribu said, as reported by the Antara news agency. The country's police chief Listyo Sigit Prabowo said his office had issued an official directive to launch an intelligence-driven crackdown on thuggery. He also urged investors to report any acts that hinder investment activities directly to the police. Tip of the iceberg The extortion case involving the Chandra Asri group is not an isolated incident. Indonesian police report having resolved more than 3,300 cases of thuggery since launching a nationwide crackdown in early May targeting rogue actors operating under the guise of civic organisations. Another reported case of intimidation and coercion involves the high-profile investment by Vietnamese electric vehicle manufacturer VinFast. The issue came to light after deputy speaker of the People's Consultative Assembly, Eddy Soeparno, received complaints from investors during a visit to the VinFast site last April as reported by Kompas. The electric car maker is developing a 170-hectare assembly plant in Subang, West Java, with an investment valued at four trillion rupiah. Incidents of intimidation and extortion have increasingly affected small-scale business owners across various regions, posing additional challenges for local entrepreneurs and hindering grassroots economic growth. Business groups have long called for reforms to address security issues and reassess the role of mass organisations, which have repeatedly been cited as a source of concern for investors. Shinta Kamdani, chairperson of the Indonesian Employers' Association, told The Business Times that extortion by rogue elements within these organisations not only affects individual companies, but also risks damaging Indonesia's overall competitiveness as an investment destination. 'Disruptions caused by such actions can lead to higher business costs, increase uncertainty, and undermine investor confidence in placing capital in Indonesia.' The country is home to more than 550,000 mass organisations, or ormas – civil society groups recognised under Indonesian law and registered with the Ministry of Home Affairs. These organisations, some backed by public funds and government grants, were originally founded as pillars of community engagement, designed to foster public participation and support national unity and development. However, their role in shaping Indonesia's investment climate has been mixed – while some have played constructive roles, others have been linked to disruptive practices that undermine investor confidence. Stumbling block The controversy comes at a critical time as Prabowo intensifies efforts to attract both domestic and foreign investment, with the goal of creating more than three million jobs through industrial development, and steering South-east Asia's largest economy towards his ambitious 8 per cent growth target. Wijayanto Samirin, an economist at Paramadina University, said that intimidation has long been a persistent complaint among national businesspeople. However, the recent scandals come at a high-stakes time when Indonesia is already on a knife's edge, struggling with an early wave of de-industrialisation and layoffs. 'It is also happening while Indonesia competes with Vietnam, India and Thailand to attract the relocation of Chinese industries seeking new investment destinations to avoid (US President Donald) Trump's tariffs,' he told BT. Indonesia is targeting to attract investment exceeding 13,000 trillion rupiah by 2029, reflecting its ambitious commitment to drive sustained economic growth and development over the coming years. Observers said maintaining a strong foundation of legal certainty is essential to building and sustaining investor confidence over the long term. Professor Didik Rachbini, senior economist at the Institute for Development of Economics and Finance, said the Indonesian government must enforce the law consistently and indiscriminately on the ground. 'The government has no other option, it must act decisively, period. Indonesia must take firm steps to eradicate extortion, thuggery and other security threats that hinder investment activity,' he said. 'If not, the consequences could be critical for the investment climate, the economy, employment opportunities and public income.'
South China Morning Post
31-03-2025
- Business
- South China Morning Post
Eid celebrations in Indonesia and India face economic and political challenges
The usual festive mood of Eid ul-Fitr holiday to mark the end of the Islamic holy month of Ramadan has been subdued in Indonesia this year as people grapple with soaring prices for food, clothing and essential goods. Advertisement Consumer spending ahead of the biggest religious holiday for Muslims, which was celebrated on Sunday in Indonesia, has declined compared to the previous year, with a predicted slowdown in cash circulation due to fewer travellers. Each year in Indonesia, nearly three-quarters of the world's most populous Muslim-majority country travel for the annual homecoming known locally as mudik that is always welcomed with excitement. People pour out of major cities to return to villages to celebrate the holiday with prayers, feasts and family gatherings. Flights are overbooked and anxious relatives weighed down with boxes of gifts form long queues at bus and train stations for the journey. But this year the Transportation Ministry said 146 million people travelled for Eid, a 24 per cent drop from last year's 194 million travellers. Advertisement The Indonesian Chamber of Commerce and Industry projects that money circulation during Eid will reach 137.97 trillion rupiah (US$8.33 billion), down from 157.3 trillion last year. The weakening purchasing power is also reflected in Bank Indonesia's Consumer Confidence Index which dipped to 126.4 in February from 127.2 in January.
The Hill
31-03-2025
- Business
- The Hill
Declining Eid travel and spending dampen holiday spirit as soaring prices hit Indonesia
JAKARTA, Indonesia (AP) — The usual festive mood of Eid al-Fitr holiday to mark the end of the Islamic holy month of Ramadan has been subdued in Indonesia this year as people grapple with soaring prices for food, clothing and essential goods. Consumer spending ahead of the biggest religious holiday for Muslims, which was celebrated on Sunday in Indonesia, has declined compared to the previous year, with a predicted slowdown in cash circulation due to fewer travelers. Each year in Indonesia, nearly three-quarters of the population of the world's most populous Muslim-majority country travel for the annual homecoming known locally as 'mudik' that is always welcomed with excitement. People pour out of major cities to return to villages to celebrate the holiday with prayers, feasts and family gatherings. Flights are overbooked and anxious relatives weighed down with boxes of gifts form long lines at bus and train stations for the journey But this year the Transportation Ministry said Eid travelers reached 146 million people, a 24% drop from last year's 194 million travelers. The Indonesian Chamber of Commerce and Industry projects that money circulation during Eid will reach 137.97 trillion rupiah ($8.33 billion), down from 157.3 trillion last year. The weakening purchasing power is also reflected in Bank Indonesia's Consumer Confidence Index which dipped to 126.4 in February from 127.2 in January. Bhima Yudistira, executive director of the Center for Economic and Law Studies, or Celios, said those trends indicate the economy is under strain, driven by economic hardship, coupled with currency depreciation and mass layoffs in manufacturing. 'These have weakened both corporate earnings and workers' incomes that suppress consumer spending,' Yudistira said, adding he 'expects a less vibrant festive season.' He said the festive spirit has been stifled by harsh economic realities, as soaring prices and dwindling incomes force residents to prioritize survival over celebration. Traditionally household consumption is a key driver of Indonesia's GDP. It contributed over 50% to the economy last year, helping push annual growth to 5.11%. However, consumer spending in 2025 is expected to be more subdued, Yudistira said. Despite the downturn, the government remains optimistic that the Ramadan and Eid momentum will support economic growth in the first quarter of 2025. 'Eid usually boosts the economy through increased spending,' Chief Economic Affairs Minister Airlangga Hartarto said ahead of the Islamic holiday. The government recently introduced incentives to stimulate economic activity, including airfare and toll road fee discounts, nationwide online shopping events, direct cash assistance for 16 million households, electricity bill reductions for low-consumption customers, and tax exemptions for labor-intensive sectors. 'With these programs in place, the government hopes to sustain consumer spending and support economic stability,' Hartarto said. The situation has also affected Endang Trisilowati, a mother of four, who said her family had to scale down their festivities budget. 'Honestly, the economic hardship is affecting us,' Trisilowati said. She described how she used to cook different dishes every Eid and invite neighbors, but now she can only afford a simple meal for her family. 'Many have resorted to just finding a way to eat on that festivity, but the spirit is low,' she said.
