APINDO-KSPSI Social Dialogue: Demand for Trade Regime Reform to Strengthen Domestic Economy

JAKARTA - Indonesia is considered to have very strong capital to build domestic economic sovereignty. This emerged in the APINDO-KSPSI Social Dialogue held in Jakarta, Wednesday (14/01/25). This forum emphasizes the importance of synergy between industry players and workers to face global economic challenges.

Five Main Capital of Indonesian Economy

Chairman of KSPSI, Moh. Jumhur Hidayat, emphasized that the Indonesian nation already has sufficient conditions to be economically independent. These conditions include a large domestic market, idealistic industrial actors, quality labor, abundant raw materials, to capital capital.

"If we are lacking in these five things, then we think about foreign countries. Don't let domestic potential not be optimally explored, we are already directly dependent on imported finished products," said Jumhur.

Business World's Anxiety: Importing Products Becomes Easier

On the other hand, the Head of the APINDO Employment Sector, Bob Azam, revealed quite worrying data. Based on the APINDO survey, currently 67% of employers are not ready for expansion, even around 50% have reduced their workforce.

Bob highlighted the anomaly of government policies which actually facilitate the import of finished goods into the domestic market, while the import of raw materials for industrial purposes actually experienced obstacles.

"The government is worried that it will increase taxes again by pressuring entrepreneurs. If the regional budget is cut, we are worried that the local government will burden the community with high taxes such as the UN, which will eventually reduce purchasing power," said Bob Azam.

Macro-Micro Synchronization and the Pancasila Industrial Relations

APINDO industrialist, Anton Supit, emphasized that macroeconomic stability must reflect the dynamics in the micro sector or the real sector. According to him, the current regulations must be in favor of improving the industrial and trade system.

He also proposed the re-application of the Pancasila Industrial Relations as a formula to achieve justice for employers and workers in Indonesia.

Following up on these various issues, KSPSI Secretary General Arif Minardi invited employers and trade unions to unite. He proposed the formation of a joint Task Force (Satgas) to inventory economic problems, including combating illegal import practices.

"Workers and employers have many common interests. It is natural for us to form a partnership to fight for the improvement of the industrial ecosystem as a whole," said Arif.

Conclusion: Towards Economic Independence in the Prabowo Era

This dialogue concludes the need for a total overhaul of the trade and industrial regime to strengthen the foundation of the domestic economy. This step is believed to be in line with President Prabowo Subianto's vision to make Indonesia a more independent nation.

This event was attended by senior officials of both organizations. From the APINDO side, Bob Azam, Anton Supit, Subchan, Mira Hanartani, Henry Wibowo, and Popy Meilani were present. Meanwhile, from KSPSI, Jumhur Hidayat, Idrus, Saadi Pamungkas, Arif Minardi, Henry Wardana, Raslina Rasyidin, Dedi Sudarajat, and Jemmy Pongoh were present.