Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) remains confident that the security situation will stabilize. President Prabowo Subianto has emphasized the importance of firm action by the National Police (Polri) and the Indonesian Armed Forces (TNI) against rioters disrupting peaceful demonstrations. Kadin has expressed its readiness to cooperate with the government and law enforcement authorities to help restore order, ensuring that business activities can return to normal.

The unstable security conditions in the country have triggered inflation and slowed down economic growth. Business actors from various associations under Kadin Indonesia have called on law enforcement agencies to quickly stabilize the situation. Deliveries of goods have started to be disrupted, and in some cases halted entirely due to supply chain breakdowns. Security assurances must be provided to economic players along all distribution channels and in all production centers.

"President Prabowo’s strong statement has brought us a sense of reassurance. Kadin supports the law enforcement efforts being carried out by the police," said Anindya Novyan Bakrie, Chairman of Kadin Indonesia, during an online dialogue on Monday (September 1, 2025) with extraordinary members (APL) of Kadin representing 200 business associations.

Members of these associations from various industries across the country are experiencing significant challenges as a result of anarchic protests. On top of issues like rising taxes and sluggish investment licensing processes, they are now facing serious pressure due to security concerns that have disrupted supply chains.

During the online meeting, the Kadin Chairman heard directly from business leaders regarding the current conditions on the ground. The most pressing concern raised was the impact of the anarchic demonstrations on supply chains. Truck drivers are reluctant to operate due to safety risks. Factories are unable to obtain raw materials and essential components. Retailers can no longer receive shipments, including food supplies. This situation is pushing prices upward and is expected to further fuel inflation.

The disruption to public order in Jakarta, Greater Jakarta (Jabodetabek), and other major cities in Indonesia has forced the government to adopt a work-from-home (WFH) policy. However, not all types of work can be performed remotely. Many jobs still require physical presence at the workplace (WFO). Employees’ fear of coming to work has also negatively affected micro and ultra-micro enterprises, including ride-hailing drivers.

"The business leaders representing the 200 associations have requested Kadin to actively convey these aspirations to the government urging strong law enforcement against the rioters, improvements to fiscal policy, and clear, reliable information and security guarantees so that supply chains, goods distribution, and logistics activities can return to normal," said Anin, as Anindya Novyan Bakrie is commonly known.

The dialogue was attended by, among others, Erwin Aksa (Vice Chairman for Organizational and Communication Affairs), Benny Soetrisno (Chairman of the Indonesian Exporters Association), Shinta Widjaja Kamdani (Chairperson of the Indonesian Employers Association - APINDO), Soelianto (Chairman of Gapopin), Erie Heryadi (Chairman of Inkindo), Juswandi (Chairman of APBMI), Erwin Hermanto (Secretary General of ASPAKI), Harry Sutanto (representing the Indonesian Logistics and Forwarders Association – ILFA/ALFI), Budi Prakosa (Secretary General of APMI), and Adhi S. Lukman (Chairman of the Indonesian Food and Beverage Producers Association – GAPMMI).

A day earlier, on Sunday (August 31, 2025), the Kadin Chairman also held discussions with 38 provincial Kadin leaders (Kadinda). The provincial chairpersons agreed to expand communication efforts to engage all relevant stakeholders, including central and regional governments, law enforcement agencies, student leaders, and business partners.

"We must clearly state that the business sector is not involved in political affairs, but it has a strong interest in maintaining political and security stability to keep trade, investment, and local economies alive and thriving," said Anin on Sunday (August 31, 2025).

Business actors from the 200 associations have also suggested holding direct meetings with the National Police Chief, the TNI Commander, and police and military leaders at the provincial and district levels. These meetings would ensure safety at industrial hubs and improve information flow, helping businesses avoid falling prey to rumors and make operational decisions based on accurate data. They acknowledged the significant negative impact of social media, where misinformation and hoaxes spread rapidly and mix with verified information.

The meeting with representatives from the 200 associations produced several agreements, as emphasized by the Kadin Chairman. Kadin is encouraging businesses to continue investing and trading, even as WFH policies remain in place. The manufacturing sector must remain operational, with adequate protection from security forces.

Kadin’s national and regional offices are expected to strengthen dialogue with government institutions, law enforcement, and legislative bodies to help restore public order and security.

Kadin will also cooperate with the Ministry of Home Affairs and local governments to implement affordable food and rice programs to help control prices and show that business leaders are concerned about the welfare of the public. To boost regional economies, Kadin will strengthen its partnerships with regional governments.

Maintaining investor confidence in Indonesia remains a top priority. Economic growth and equitable income distribution stem from investment across various sectors. Therefore, the licensing process at the Investment Coordinating Board (BKPM) must run smoothly, in accordance with regulations, and free from unnecessary obstacles or illegal levies. Other ministries involved in the business licensing process must also facilitate efficiency.

In the near future, Kadin plans to hold a meeting with the Minister of Investment/Head of BKPM, who also serves as CEO of Danantara, Rosan Roeslani, to ensure that investment flows continue without disruption.

"Kadin fully supports and is ready to collaborate with the government and Danantara to increase investment," said Anin.

Kadin’s central and regional offices, along with all affiliated associations, are expected to serve as partners to the government in safeguarding national economic resilience, which is a vital component of overall national security. All members are urged to maintain communication with their constituencies and the broader business community to ensure internal unity and external cooperation.

The current security instability is placing a heavy burden on business operations, particularly in the areas of investment, production, supply chains, and trade. Businesses have significant responsibilities to the government, employees, and society and these responsibilities continue to grow. In October 2025, for example, provincial minimum wages (UMP) for 2026 are set to be negotiated. Amid global uncertainty and declining domestic purchasing power, companies’ ability to meet all their obligations is being tested.

"Therefore, association leaders are urging the government to review rising taxes, import tariffs, and energy prices. The current inefficiencies in the business licensing process must also be addressed. This is an opportunity for all parties to assess their burdens and make improvements in the spirit of ‘Indonesia Incorporated,’" concluded Anin.