Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Prabowo, businesses shake hands to create jobs – Economy – Full Analysis.
resident Prabowo Subianto has held back-to-back meetings with Indonesian businesses at his private Hambalang estate in Bogor, West Java, during which private players expressed their commitment to support the government’s efforts to create more jobs while calling for regulatory support to improve the ease of doing business.
The President met with more than 20 business leaders under the Indonesian Employers Association (Apindo) banner on Monday evening and proceeded to meet with some of the country’s top conglomerates the very next day, both meetings lasted hours.
Apindo advisory council chairman Sofjan Wanandi told The Jakarta Post on Wednesday that the industry group had pledged to create jobs to absorb a domestic workforce growing by around 3 million people each year. However, it also urged the government to support industry players by cutting some regulatory hurdles, particularly those that create “high costs.”
Among the issues discussed were excessive import restrictions on raw materials, which Sofjan said had hampered business expansion. As a start, the industry group plans to come up with a priority list consisting of “three to five items” to be sent to the government “as soon as possible.”
While businesses called for easier imports of raw materials, they also demanded tighter restrictions on finished goods. The group has repeatedly pointed to the flood of cheap imported goods that disrupts the competitiveness of locally made products.
Sofjan said Prabowo had stated commitments to heed to the group’s requests and commissioned State Secretary Prasetyo Hadi to serve as the liaison to follow them through.
Prasetyo told reporters on Tuesday that the meeting with Apindo revolved around efforts to improve the competitiveness of domestic industries so they can compete more effectively at the global level.