THE struggle for the leadership of the Indonesian Chamber of Commerce and Industry (Kadin) reinforces the impression that the business association is unable to distance itself from the political interests of the government. Instead of being a professional organization, Kadin has once again become a vehicle for a tycoon close to the Palace.

On August 14, the Kadin extraordinary national congress appointed Anindya Bakrie as general chair, replacing Arsjad Rasjid. Anindya’s supporters claimed they wanted to improve Kadin’s position as a strategic partner of the government, and therefore it needs to strengthen its relationship with President Jokowi and president-elect Prabowo Subianto.

Arsjad was deemed as being at odds with the government because he was the Chair of the Ganjar Pranowo-Mahfud Md. campaign team in the 2024 presidential election. Arsyad saw the congress as a coup d’etat that was a violation of Kadin’s articles of association/bylaws.

The disarray over the Kadin leadership began a month after the struggle for the position of Golkar Party General Chair, which was also intricately linked with the interests of the Palace. Airlangga Hartarto, Golkar’s General Chair from 2017 to 2024 resigned, saying he wanted to smooth the transition of government from President Jokowi to Prabowo Subianto.

Kadin is the sole parent organization of businesspeople in Indonesia and is regulated by Law No. 1/1987 on the Chamber of Commerce and Industry. Although it should be an independent partner, Kadin has long been under the shadow of the government. Becoming leader of Kadin means obtaining access to the inner circle of power and ease of doing business. The chair needs to obtain the blessing of the government.

Tempo discovered the role of the Palace, a number of ministers, intelligence agencies and the police in Arsjad’s victory at the 2021 Kadin national congress in Kendari. His rival was none other than Anindya Bakrie, who had initially been a strong candidate.

Now it is just the turn of the oldest son of Golkar politician and Kadin figure Aburizal Bakrie to be favored by the Palace. Justice and Human Rights Minister Supratman Andi Agtas was present at the Kadin office the day after the extraordinary national congress appointed Anindya. He made certain that the presidential decision on the appointment of the Kadin General Chair will be issued immediately.

This partnership means that the government has even more freedom to benefit from the capital of businesspeople to strengthen its position. Both sides are engrossed in considering the mutual benefits, while the public interest is a much lower priority.

The most concrete example of this mutualistic symbiosis is the issuing of the Job Creation Law. This law failed to meet its aims to attract investment. There has been no flood of investment as the government promised, apart from capital going to the mining and its derivatives sector.

On the other hand, the manufacturing sector is gasping for breath. Since the Job Creation Law was passed in October 2020, not a single new factory has opened to employ thousands of workers. What has happened is a wave of redundancies that it seems will only increase in number, from 64,000 in 2023 to an estimated more than 70,000 by the end of this year.

Therefore, the disarray over Kadin’s leadership has no relevance to the public, but only to the government’s interest in controlling Kadin. If Arsjad can rise or fall as a result of politics, it is not impossible the same thing will happen to Anindya if he officially becomes chair.