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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin Indonesia Immediately Sanctions Illegal Munaslub Participants

The Executive Board of Kadin Indonesia has conducted a legality review and investigation of violations by a number of parties, including several administrators, in the implementation of the Illegal Extraordinary National Conference (Munaslub) on Saturday (14/9), in Jakarta. In connection with this, the Executive Board has also held an expanded management meeting with 21 Provincial Kadin Chairmen on Sunday (15/9) to decide on sanctions for the parties involved in the illegal National Conference.

Kadin Indonesia's attorney, Hamdan Zoelva, said it can be concluded that the National Conference on Saturday was unlawful and illegal because it violated both Law Number 1 of 1987 on Chambers of Commerce and Industry (Kadin Law), Presidential Decree (Keppres) Number 18 of 2022 on Amendments to the Articles of Association and Bylaws (AD/ART) of Chambers of Commerce and Industry.

‘In answering the question of whether the National Conference on Saturday can be legally justified and the provisions of laws and regulations, we must refer to and prioritise Kadin Law no 1 of 1987, Presidential Decree 18/2022, and Kadin Indonesia's bylaws,’ he said.

Based on Kadin Indonesia's bylaws Article 18 paragraph (1), the Munaslub is held to hold the Executive Board accountable for violations of the principles of the bylaws, misappropriation of the organisation's finances and treasury, or malfunctioning of the Executive Board so that the provisions of the bylaws and decisions of the National Conference are not implemented properly. The holding of the Munaslub must also be preceded by the First and Second Warning Letters, in which the Executive Board is given 30 days each to correct.

‘So, the provisions in Article 18 paragraph (1) are not fulfilled with regard to the absence of implementation of accountability from the Executive Board of Kadin Indonesia, in this case by Arsjad Rasjid as the legitimate Chairman of Kadin,’ said Hamdan.

The Chairman of the Constitutional Court for the 2013-2015 period also underlined the reason for organising the Munaslub. Referring to the Munaslub Invitation, it cannot be clearly known what exactly is the reason or background for holding the 2024 Munaslub.

‘Based on information developing in the mass media, it is known that the pretext for holding the Munaslub is the joining of Arsjad Rasjid, who is the Chairman of Kadin, as the Head of the Winning Team for the 2024-2029 Presidential and Vice Presidential Candidates,’ said Hamdan.

According to Hamdan, if this is the reason, according to Article 37 letter a of Kadin's Articles of Association on Delegation of Authority, Arsjad Rasjid's action is legal. Given, before being appointed as Chairman of the Winning Team, Arsjad Rasjid in his capacity as Chairman of Kadin had appointed Vice Chairman for Organisation, Law and Communication (Yukki Nugrahawan Hanafi) as Acting (Plh) Chairman of Kadin Indonesia.

‘So, there is no evidence of a violation of Article 14 of the Articles of Association of Kadin Indonesia, because Arsjad Rasjid's position in the Winning Team of the 2024-2029 Presidential and Vice Presidential Candidates is the political right of every citizen and has taken the applicable mechanisms and procedures in accordance with Article 37 of the Articles of Association of Kadin Indonesia,’ Hamdan explained.

Hamdan also explained that the implementation of the Munaslub did not follow the provisions in Article 18 paragraph (2) of the AD / ART which requires a request of at least 1/2 (half) of the number of Provincial Kadin and 1/2 (half) of the number of Extraordinary Members (ALB) at the national level who attended the last National Conference. In addition, the holding of the Munaslub must also be preceded by the First and Second Warning Letters, in which the Executive Board is given 30 days each to correct.

‘The non-fulfilment of this provision is reinforced by the rejection of 21 Provincial Kadin on the results of the 2024 Munaslub with the agenda of establishing Anindya Bakrie as the elected Chairman,’ said Hamdan.

Furthermore, the authority of the 2024 Munaslub in electing and appointing Anindya Bakrie as Chairman is invalid because it is not preceded by the implementation of the Executive Board's accountability and the Munaslub's decision whether to accept or reject the accountability as stipulated in Article 18 paragraph (11) of the AD / ART.

‘Based on these reasons, especially the rejection of 21 Provincial Kadin, the Munaslub does not meet the provisions of Article 18 paragraph (12) which states that the Munaslub reaches a quorum and is valid if attended by more than half (50% +1) of the Full Participants, and its decisions are declared valid and binding on the organisation if agreed upon by deliberation or by a majority vote of the Munaslub participants,’ said Hamdan.

Finally, he closed his statement by stating that the legally valid Kadin Executive Board is the Board under the leadership of Mr Arsjad Rasjid.

Vice Chairman for Law and Human Rights of Kadin Indonesia, Dhaniswara K Harjono added, the Kadin Indonesia Executive Board based on its authority has conducted investigations, examinations and studies that provide clues to violations by members of the management (Business Council, Advisory Board, Advisory Board and Executive Board), several Provincial Kadin Chairmen, and ALB based on valid and convincing evidence in the form of letters and documents of the Munaslub preparation. The evidence includes the invitation letters for the Munaslub and ALB Convention which are procedurally flawed, as well as letters of rejection of the Munaslub from 21 Provincial Kadin Chairmen.

‘The claim made by the organisers of the Munaslub is that 28 Provincial Kadin and 25 ALB support it. However, we found the fact that only 13 Provincial Kadin supported and only 10 Provincial Kadin Chairmen attended. ALB also only 23 out of a total of 124 members are entitled to attend the Munaslub. For these violations of the bylaws and organisational regulations, the Kadin Executive Board has held a daily management meeting whose decision agreed to impose sanctions on those who have committed violations,’ said Dhaniswara.

Dhanis explained, based on the bylaws and organisational regulations, for violations committed by members of the management, the Kadin Indonesia Executive Board through the decision of the Daily Executive Meeting can impose sanctions in the form of permanent dismissal from office and dismissal as a Kadin member without a warning letter first.

Meanwhile, for the Provincial Kadin Chairman who commits an offence, the Kadin Indonesia Executive Board in accordance with its authority can impose sanctions in the form of revocation of the Ordinary Member Identity Card (KTA-B). Likewise, ALBs involved in the National Conference can be sanctioned with the revocation of the Extraordinary Member Identity Card (KTA-ALB).

‘So, according to the bylaws and organisational regulations, in critical circumstances, the Executive Board can revoke the membership of the Provincial Kadin Chairman and Extraordinary Members,’ said Dhaniswara.

For additional information, the Executive Board has sent a letter to the President regarding a request to the government as the Supervisor of Kadin Indonesia to carry out supervision and guidance in accordance with Law number 1 of 1987 and Presidential Decree number 18 of 2022. The Executive Board has also sent a letter to the Minister of Law and Human Rights requesting an audience and postponing the process of making a new Presidential Decree on Kadin Indonesia.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry