The Indonesian Chamber of Commerce and Industry (Kadin) insists it will continue working closely with the government in trying to mitigate the impact of the global economic downturn.
In doing so, the institution will remain an independent body, free from the influence of any political slant, Kadin chief Mohamad Suleman Hidayat told The Jakarta Post on Tuesday.
"We at Kadin are committed to working closely with the government. Yes, definitely, but we are doing it under the framework of safeguarding the economy from the impact of the global crisis," said Hidayat, reelected as chairman at the group's recent national meeting.
"Through this partnership, both Kadin and the government expect to minimize expected layoffs next year, in particular in first and second quarters."
While Kadin's crucial role in backing President Susilo Bambang Yudhoyono in the 2004 presidential election has been widely reported on, Hidayat said that as an institution, Kadin would remain independent.
Sofjan Wanandi, chairman of the Indonesian Employers Association (Apindo), also emphasized Kadin's independence.
"Kadin is independent. It doesn't support a particular political party or particular presidential candidates," he said.
"We support President Susilo Bambang Yudhoyono and his government as they deal with the crisis, that's true. But that doesn't mean we support his bid for reelection."
The measures Kadin has proposed to the government to help stem the blow from global economic slowdown include tax cuts, a boost in infrastructure construction, and aggressive fiscal expansion, Hidayat explained.
"Boosting infrastructure is crucial. We fully support the government's plan to disburse up to Rp 100 trillion in the first few months of next year for these projects," Sofjan said.
"Not only will it stimulate the real sector, but it will also create plenty of jobs -- something we need in a time of crisis such as this."
Finance Minister Sri Mulyani Indrawati previously said the government would soon finish disbursing Rp 24 trillion (US$2.2 billion) in funds for infrastructure to all provinces, in a bid to maintain their growth.
Another Rp 72 trillion will be spent on government-run infrastructure-related projects.
That figure includes Rp 25.8 trillion from the Public Works Ministry, Rp 12.6 trillion from the Transportation Ministry, Rp 4.5 trillion from the Energy and Mineral Resources Ministry, Rp 3.5 trillion from the Trade Ministry, Rp 2.8 trillion from the Finance Ministry and Rp 2.2 trillion from the Religious Affairs Ministry. -- JP
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