JAKARTA - The revision of Law Number 1 of 1987 concerning the Chamber of Commerce and Industry (KADIN) is proposed to be a momentum to strengthen the position of the business world in the national development process. One point that emerges is the strengthening of the position of KADIN as the only representation of the business world from the national to regional levels.
Member of the Indonesian House of Representatives and Deputy Chairman of the Coordinating Board for Political and Security Affairs of the Indonesian KADIN, Bambang Soesatyo (Bamsoet) said that changes in regulations were needed because the economic challenges Indonesia is facing today are very different from when the KADIN Law was drafted almost four decades ago.
According to Bamsoet, digital transformation, changes in industry structure, and global competition require the strengthening of business institutions so that they can become strategic partners of the government in encouraging economic growth, investment, job creation, and improving national competitiveness.
"The Indonesian economy today faces challenges that are far different from when the KADIN Law was drafted decades ago. The business world needs certainty, strong coordination, and clear partnership mechanisms between the state and the private sector," said Bamsoet in the Public Hearing (RDPU) of the DPR RI Legislation Agency together with KADIN Indonesia at the Parliament Complex, Jakarta, Wednesday (18/6).
He explained that one of the important substances in the revision was the strengthening of the position of KADIN as the official representation of the business world at the national, provincial, district and city levels.
According to him, the certainty of representation is important to avoid overlapping authority, conflict of management, as well as strengthening communication between the government and business actors.
"The government needs an official partner that has strong legitimacy to convey the aspirations of the business world. On the other hand, business actors also need institutional certainty so that their voices can be effectively conveyed in the policy-making process," he said.
In addition, the revision of the KADIN Law also proposes strengthening the institutional status of KADIN which has a special character (sui generis) and has a non-budgeter status. Bamsoet assessed that KADIN has a different function from community organizations and professional associations because it carries out mandates directly related to national economic development.
In the draft revision, KADIN is also proposed to have a greater role in the process of preparing strategic policies, ranging from the National Medium-Term Development Plan (RPJMN), the Regional Medium-Term Development Plan (RPJMD), the Planning for Development (Musrenbang), to the discussion of regulations that have an impact on the business world.
Bamsoet assessed that the involvement of the business world in the preparation of fiscal policies is also important considering that the private sector is one of the main engines of investment and job creation.
"KADIN also needs to be involved in providing views on the preparation of the State Budget and Regional Budget. Input from the business world is very important considering that the private sector is the main engine of investment and job creation," he said.
In addition to strengthening the role in policy formulation, the revision of the KADIN Law also regulates authority in the fields of certification, international trade, business training, enforcement of the business ethics code, to the establishment of an internal dispute resolution mechanism through the Ethics Committee which is final and binding.
According to Bamsoet, the institutional strengthening is needed so that the Indonesian business world has a stronger foundation in facing the increasingly competitive global economic challenges.
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