Tenggara Strategics, Jakarta – 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.
While it is not unusual for political factions or governments to attempt to wrest control of an influential organization like Kadin, the disruptive tactics employed by the faction with ties to both the current and incoming administrations – via Golkar – have exacerbated the leadership dispute. This dysfunction within Kadin is likely to hinder coordination and cooperation between the private sector and the incoming Prabowo administration on key national programs.
What we've heard
Some entrepreneurs have pointed unresolved past conflicts as the source of the internal conflict at the Indonesian Chamber of Commerce and Industry (Kadin), specifically Anindya Bakrie still refusing to accept his loss to Arsjad Rasjid in the chairmanship election at the Kadin National Conference in 2021.
At the time, Anindya had garnered support by funneling billions of rupiah into regional Kadin chapters, whereas Arsjad Rasjid had the support of President Joko "Jokowi" Widodo. It was also reported that the National Intelligence Agency and the National Police were involved in helping to secure Arsjad's victory, by persuading Kadin's regional administrators to support Arsjad.
Arsjad later tried to mend fences with Anindya to run the organization but Anindya declined his offer, as he still sought Kadin's chairmanship.
Prabowo Subianto and running mate Gibran Rakabuming Raka's victory in February's presidential election led to changes in the political landscape, paving the way for Anindya to pursue his ambition. He has since held a series of extraordinary national meetings (Munaslub) with an aim to call snap elections for the Kadin chairmanship before Prabowo's inauguration next month. Last week's national meeting marked the peak of Anindya's efforts to remove Arsjad as Kadin chair.
Another source supported this view, explaining that Arsjad's role as Ganjar Pranowo and Mahfud MD's campaign manager for the 2024 presidential election had stirred up discontent within Kadin. This was related to Jokowi's backing for Arsjad chairmanship bid at the 2021 Kadin conference, which predated Jokowi's tacit endorsement for Prabowo and Gibran, the President's eldest son, in the general election.
Aburizal Bakrie reportedly protested his son Anindya's loss at the 2021 Kadin conference. As chair of the Golkar Party's advisory board, Aburizal is alleged to have helped Anindya secure the support of president-elect Prabowo this year, playing a key role in connecting his son with Prabowo's team.
The same source suggested that the president-elect was interested in using Kadin to advance the agenda of his incoming administration. On the other hand, Arsjad was seen to be in alignment with Ganjar and the PDI-P, in addition to his close relationship with Puan Maharani and her husband Happy Hapsoro. The source also noted that the palace was aware of the plan to oust Arsjad as Kadin chair.
Meanwhile, dissatisfaction with Arsjad's leadership is mounting as Anindya gains more support from Kadin's regional chapters and various industrial associations, and an increasing number of groups are shifting their support to Anindya.
Source: https://www.thejakartapost.com/opinion/2024/09/25/analysis-kadin-riven-by-leadership-dispute.htm