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How Kadin has turned into Jokowi’s lobbying machine

Announced last month, the star-studded line-up at the Indonesian Chamber of Commerce and Industry (Kadin) is now seen as a strategic move by President Joko “Jokowi” Widodo to realize his ambitious plans, analysts say.

Yerica Lai and Vincent Fabian Thomas (The Jakarta Post)
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Jakarta
Sun, September 5, 2021

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How Kadin has turned into Jokowi’s lobbying machine President Joko “Jokowi” Widodo speaks at the closing ceremony of the Indonesia’s Chamber of of Commerce and Industry’s (Kadin) leadership meeting in Surakarta, Central Java on Nov. 28, 2018. (Antara/Wahyu Putro A)

I

ndonesia’s biggest business lobby group appears to have strengthened its ties to the government after members of the Cabinet, heavyweight politicians and corporate allies filled up its new board.

Announced last month, the star-studded line-up at the Indonesian Chamber of Commerce and Industry (Kadin) is now seen as a strategic move by President Joko “Jokowi” Widodo to realize his ambitious plans, analysts say.

Arsjad Rasjid, the newly elected chairman of Kadin and president director of publicly listed diversified energy company Indika Energy, will work in the next five years alongside an advisory board full of well-established figures in the Indonesian business world, including former industry minister MS Hidayat, corporate scion and Arsjad’s former rival in the chairmanship race, Anindya N. Bakrie, and the latter’s father, political heavyweight Aburizal Bakrie.

However, in an unprecedented move, Arsjad will also be accompanied by figures who are currently in the Cabinet. They include Deputy State-Owned Enterprises (SOE) Minister Kartika Wirjoatmodjo; expert aides to the coordinating economic affairs minister, Sanny Iskandar and Shinta Widjaja Kamdani; as well as advisors at the Investment Coordinating Board (BKPM), Eka Sastra and Yukki Nugrahawan.

The new board’s structure appears to mimic President Jokowi’s administration, with the chamber’s roster of administrators now being headed by four “coordinating vice chairpersons”, a new post that Arsjad said was a reflection of the government’s coordinating ministers.

Intricate web

The makeup of the new board was revealed after Arsjad and his lone challenger Anindya struck a deal days before Kadin's national meeting in early July, ending the groups’ chairmanship contest amid allegations of interference from the state — thought to be favoring a specific candidate.

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