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Analysis: Bahlil brokers truce in Kadin leadership dispute

Tenggara Strategics (The Jakarta Post)
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Jakarta
Tue, October 8, 2024 Published on Oct. 7, 2024 Published on 2024-10-07T16:40:56+07:00

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Analysis: Bahlil brokers truce in Kadin leadership dispute Investment Minister Bahlil Lahadalia prepares to speak with reporters at the ministry’s building in Jakarta on Jan. 24, 2023. (The Jakarta Post/Deni Ghifari)

E

nergy and Mineral Resources Minister Bahlil Lahadalia has stepped in to mediate the ongoing leadership dispute within the Indonesian Chamber of Commerce and Industry (Kadin), involving Anindya Bakrie and Arsjad Rasjid. Bahlil, who revealed the mediation through an Instagram post on Sept. 27,  claimed that both parties had reconciled and pledged to maintain unity within Kadin. He also warned that provocateurs were exploiting the rift, which, if allowed to fester, could harm the organization’s integrity.

However, the meeting appears to have only brought about a temporary truce. Despite Bahlil’s efforts, both Anindya and Arsjad continue to assert their claims to Kadin’s top leadership. A Kadin press release on Sept. 28, named Arsjad as the official chair and Anindya as head of the advisory board. Yet, just hours later, Anindya publicly rejected this arrangement, stating that he wished for Arsjad to instead take the advisory board position, as he, Anindya, intends to assume full control over Kadin’s leadership in the coming two weeks.

In response, Arsjad took to a Kadin video on Sept. 30, to dispel rumors circulating among Kadin members and the public. He disclosed that his meeting with Anindya and Bahlil resulted in written agreements, signed under seal, that outline a path forward. One of the key points agreed upon was the organization of a Kadin national conference (Munas) after the inauguration of the next president, Prabowo Subianto, which aims to settle the leadership conflict once and for all.

The roots of this dispute trace back to Sept. 14, when Anindya’s faction called for an extraordinary national congress (Munaslub) that attempted to remove Arsjad from his position. This move came despite 21 out of 35 Kadin provincial executive committees opposing the initiative. Golkar Party deputy chair Nurdin Halid, who oversaw the Munaslub vote, argued that Arsjad had violated Kadin’s bylaws when he took leave to manage the campaign of the Ganjar Pranowo-Mahfud MD presidential ticket.

Although the government has maintained its official neutrality in Kadin’s leadership row, Industry Minister Agus Gumiwang Kartasasmita has met with Anindya twice since the latter claimed Kadin’s chairmanship. The most recent meeting took place on Sept. 30, during the “Discussion with Kadin Indonesia Stakeholders on Industrial Development Synergy for 2025-2029” in Jakarta. There, Agus urged Kadin to contribute to the revision of Law No. 3/2024 on industry and the drafting of a new industrial road map for the country’s long-term economic development.

While Bahlil’s mediation has not fully resolved the leadership split, it has likely prevented a further escalation of the conflict. The agreement to hold a national conference offers a crucial opportunity to resolve the issue amicably. Should the conflict continue unchecked, it could destabilize Kadin and hinder Indonesia's private sector during the critical early phase of the incoming Prabowo administration, a period when national coordination is paramount.

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