Faisal Maliki Baskoro, Jakarta – After the Indonesian Chamber of Commerce and Industry elected Suryo Bambang Sulisto as its new chairman on Saturday, questions quickly arose over his ties to Golkar Party chairman Aburizal Bakrie and whether he would promote a reform agenda.
The tussle for the leadership of the country's most powerful business body, also known as Kadin, has been part of a wider battle pitting younger reformists against old-guard businessmen who have in the past prospered from an inward-looking investment climate.
The chairmanship of Kadin is also seen as a stepping stone to political influence, with several government ministers having risen to prominence in the group. The last elected chairman, MS Hidayat, left the post to become industry minister last year.
Suryo, 63, is president commissioner of coal miner Bumi Resources, the crown jewel in Bakrie Group, Aburizal's family business empire.
Suryo is also a close friend of the tycoon/politician, whose influence has steadily risen since he won a barely concealed battle against former Finance Minister Sri Mulyani Indrawati this year.
Aburizal, who himself led Kadin from 1994 to 2004, is also chairman of the joint secretariat for President Susilo Bambang Yudhoyono's ruling coalition.
Burhanuddin Muhtadi, a political analyst from the Indonesian Survey Institute (LSI), said Suryo's election reaffirmed the status quo in the face of challenges from younger leaders. "Since a long time ago, Kadin has been very closely connected to Golkar. Nothing has changed."
Suryo edged out Wishnu Wardhana, vice president of coal miner Indika Energy, in the second round of voting. Suryo won the initial voting over four other hopefuls but did not have a majority, forcing the runoff.
Kevin O'Rourke, a Jakarta-based political risk analyst, said Suryo's win was a coup for Aburizal. "As the president commissioner of the Bakrie Group's main operating company, Bumi Resources, Sulisto would significantly strengthen the policy-making influence of Golkar chair Aburizal Bakrie," he said.
Despite his close relationship with Aburizal, business leaders said they expected the new Kadin chairman to be innovative and assist the government in furthering industrial development.
Erwin Aksa, the chairman of the Indonesian Young Entrepreneurs Association (Hipmi), said spurring growth in manufacturing should be a major part of Kadin's agenda in light of pressure from the Asean-China Free Trade Agreement, which came into effect this year.
"The manufacturing sector has been showing signs of growth, but we still have to boost manufacturing in the non-oil and gas sectors," he said.
Hatta Rajasa, the coordinating minister for the economy, called on the new chairman to boost competitiveness and invest more in research and development. "We must build a strong partnership between the government and the business world," he said. "We can enhance cooperation through the public private partnership scheme, and by increasing the role of regional Kadin chapters."
Tensions were high during Kadin's national conference, with police keeping the peace among angry participants.
Ade Sudrajat, deputy chairman of the Indonesian Textile Association (API), said the quarrels did not reflect well on business leaders. "One would hope to see more elegance and maturity from businessmen," he said.
[With additional reporting from Anita Rachman, Reuters and Antara.]