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Analysis: Kadin riven by leadership dispute
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Indonesian Chamber of Commerce and Industry (Kadin) chairman Arsjad Rasjid speaks on Nov. 13, 2022 at the 2022 Group of 20’s Business 20 (B20) Summit in Nusa Dua, Bali. (G20 Secretariat)
The Indonesian Chamber of Commerce and Industry (Kadin) is currently embroiled in a leadership dispute, with two figures—Anindya Novan Bakrie and Arsjad Rasjid—each claiming the position of chair. The victory of the Prabowo Subianto-Gibran Rakabuming Raka presidential ticket is alleged to have fueled efforts to unseat the incumbent chair, Arsjad Rasjid, who was the campaign manager of a losing presidential candidate.
The dispute started on Sept. 12, when an invitation was circulated for an extraordinary national congress (Munaslub) scheduled just two days later, on Sept. 14. In response, Kadin's deputy chair for organizational affairs, Eka Sastra, held a press conference, stating that the proposed Munaslub would violate Kg2wwadin’s bylaws. Nevertheless, the congress went ahead, leading to Anindya’s appointment as Kadin chair for the 2024–2029 term, despite 21 Kadin provincial executive committees voicing their opposition to the Munaslub.
Since then, both Arsjad and Anindya, who were rivals in Kadin's 2021 national congress, have claimed leadership of the organization, deepening the rift within Indonesia’s leading business association.
The Munaslub was attended by 28 out of 35 provincial Kadin branches and 25 associations, with Golkar Party deputy chair Nurdin Halid overseeing the vote. A total of 221 associations across 15 business sector groups cast their votes in favor of Anindya. Nurdin stated that the congress was convened because Arsjad had violated Kadin’s bylaws by engaging in partisanship during the 2024 general election. Arsjad had taken a leave of absence from Kadin to serve as campaign manager for the Ganjar Pranowo-Mahfud MD presidential ticket.
However, Kadin’s deputy chair for law and human rights, Dhaniswara K. Harjono, argued that the congress results were invalid, as it did not meet the necessary conditions to be legally held. According to Kadin’s bylaws, an extraordinary congress to remove its chair can only be convened if the chair violates the organization's rules after receiving two formal written warnings. Additionally, the motion to hold such a congress must be supported by at least half of the provincial Kadin branches and member associations. Arsjad never received any written warnings, and the fact that 21 provincial Kadin executive committees rejected the Munaslub suggests that the required quorum was not met. Dhaniswara stated that Arsjad’s camp plans to pursue legal action against Anindya’s faction.
This is the second leadership dispute in Kadin’s history. In 2013, dissatisfaction with then-chair Suryo Bambang Sulisto's leadership and allegations of bylaw violations led to an extraordinary national congress initiated by Kadin advisory board head Oesman Sapta Odang, which elected Rizal Ramli as chair. However, Suryo, supported by Anindya’s father, former Golkar Party chair Aburizal Bakrie, contested the legitimacy of the congress. In 2015, both Rizal and Suryo were succeeded by Eddy Ganefo and Rosan Perkasa Roeslani, respectively. The division within Kadin persisted until 2021, when Arsjad succeeded Rosan, and Presidential Decree No. 18/2022 was issued, officially recognizing only one Kadin under Arsjad’s leadership.
The current split within Kadin is likely to have a significant impact on Indonesia's economic planning, given the organization's influential role. Kadin has been instrumental in several key initiatives, such as Rosan's appointment as the head of the Omnibus Law Task Force, its work committee's collaboration with the Nusantara Capital City (IKN) Authority, and its advisory role to the government on wage issues through national and regional wage councils. Kadin is the only employer organization with a specific legal foundation under Law No. 1/1987 and its associated regulations. As a result, Arsjad claims that only one Kadin can exist de jure.
