Jakarta. Indonesia’s top business association, Apindo, is set to host its 34th National Working and Consultation Meeting in Bandung from August 4 to 6, amid growing economic uncertainty and structural challenges facing the country’s private sector.

Carrying the theme “With the Spirit of Indonesia Incorporated Towards Golden Indonesia 2045,” the forum will unite business leaders from across Indonesia to forge actionable solutions in partnership with the government to help the country meet its long-term economic goals.

Apindo Chairwoman Shinta W. Kamdani pointed out that the business climate is becoming increasingly difficult. Indonesia’s economic growth slowed to 4.87 percent in the first quarter of 2025, while household consumption -- a key growth driver -- rose only 4.89 percent, signaling weakening purchasing power.

Government spending contracted in the same period, eliminating a vital source of stimulus. Meanwhile, in the real sector, manufacturers continue to face sustained contraction, with the Purchasing Managers’ Index (PMI) remaining below 50 for three consecutive months.

“To achieve the Golden Indonesia 2045 vision -- which requires an average growth rate of 8 percent -- we need bold structural reforms, improvements in human capital, regulatory simplification, and a fair, competitive business ecosystem,” Shinta said at a press conference in Jakarta on Tuesday.

Golden Indonesia 2045 is a national vision to transform the country into a high-income, advanced economy by its centennial anniversary.

Beyond domestic issues, businesses are also contending with volatile global conditions: geopolitical tensions, tariff wars, energy price fluctuations, and disrupted supply chains. A key concern is the United States’ reciprocal tariff policy, which has increased pressure on Indonesia’s labor-intensive export industries.

Still, optimism persists. In the second quarter of 2025, investment realization reached Rp 477.7 trillion, up from Rp 465.2 trillion in Q1. In total, Rp 942.9 trillion ($58.3 billion) in investments were recorded in the first half of the year -- roughly 49.5 percent of the 2025 target -- creating more than 1.2 million new jobs. Notably, investment was nearly evenly split between Java (49.5 percent) and regions outside Java (50.5 percent).

“Business cannot afford to be passive observers. We must become active partners in addressing national challenges,” Shinta said. “This forum is a platform for strategic consolidation between national and regional businesses, and a space for practical dialogue with the government to help us realize the Golden Indonesia 2045 vision.”

Apindo also praised recent progress in Indonesia-US trade diplomacy, particularly the joint statement under the Framework for Agreement on Reciprocal Trade. The deal reduced the risk of punitive US tariffs on Indonesian exports and restored investor confidence in the bilateral trade relationship.

Apindo urged the government to follow up quickly with supportive and measurable policies to translate investor optimism into concrete investment commitments. At the same time, it stressed the need to diversify Indonesia’s export markets to reduce reliance on a handful of major trading partners.

The group called for the acceleration of trade negotiations with the European Union through the Comprehensive Economic Partnership Agreement (CEPA) and stronger engagement with countries in the Regional Comprehensive Economic Partnership (RCEP), CPTPP, BRICS, and ASEAN.

To support job retention and creation, Apindo proposed several targeted fiscal incentives -- such as VAT exemptions for subcontracting and raw materials, faster VAT refunds, import duty waivers, and broader government-borne income tax schemes (PPh 21) -- as well as improved access to inclusive financing.

The business group also called for labor and energy cost relief through health insurance subsidies (BPJS Kesehatan), electricity and gas discounts, and support for rooftop solar power adoption through net-metering schemes. These measures are intended to protect cash flow, preserve production capacity, and prevent a new wave of layoffs.

“Our labor-intensive industries are at a crossroads. Without sufficient protection and incentives, we risk losing sectors that have long provided large-scale employment,” Shinta warned. “This national working meeting is not just symbolic -- it’s a forum to advance real solutions and forge a united front with the government.”

Indonesia Incorporated
According to the organizers, the event will also serve as a unifying moment for local business communities, reinforcing center-regional cooperation and ensuring that national policies reflect on-the-ground business realities.

Shinta said Apindo is positioning the forum as a national stage for business advocacy, rooted in the Indonesia Incorporated spirit -- where business and government work hand-in-hand to face shared challenges and unlock economic opportunities.

Anthony Hilman, head of the forum’s steering committee, said holding the event outside Jakarta reflects Apindo’s commitment to regional business concerns, particularly structural issues such as high logistics costs, centralized permitting, legal uncertainty, and local intimidation practices.

“These issues are deeply felt in the regions. The national working meeting must be a space where regional voices are not only heard but answered with action,” Anthony said.

Several senior cabinet members from the current Indonesian administration are expected to attend, including:

• Coordinating Minister for Economic Affairs Airlangga Hartarto
• Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono
• MSMEs Minister Maman Abdurrahman
• Manpower Minister Yassierli
• Creative Economy Minister Teuku Riefky Harsya

They are scheduled to engage in direct dialogue with business leaders from across the country.

In addition to the working sessions, Apindo will host an economic dialogue aimed at strengthening the association’s role as a bridge between central and regional interests, aligning private sector strategies with national development goals.

Featured speakers will include senior economists and Apindo advisors Wijayanto Samirin and Raden Pardede. Discussions are expected to focus on accelerating economic transformation and achieving Indonesia’s long-term growth targets.

Through this forum, Apindo aims to ensure that future policy direction is no longer top-down, but grounded in the lived experiences of entrepreneurs and industry players.

“We cannot afford prolonged stagnation. The business sector needs certainty, urgency, clear policy direction, and genuine support from the government,” Anthony said. “This meeting isn’t just a stage for dialogue -- it’s a springboard for joint action.”

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