Revision of the Kadin Law Reflects an Anti-Conglomeration Vision

Bob Hasan, Chair of the Legislative Body of Indonesia’s House of Representatives (“DPR RI”), stated that the proposed revision to Law No. 1 of 1987 on the Indonesian Chamber of Commerce and Industry (“Kadin”) (“Kadin Law”) is intended to restore economic power to the broader public.

He explained that the revision to the law embodies a vision of promoting agglomeration while countering conglomeration. He stated that this vision is consistent with Article 33 of the 1945 Constitution of the Republic of Indonesia on the people-centered economy. “In other words, Article 33 clearly reflects principles that are fundamentally incompatible with liberalism or neo-liberalism,” he told Hukumonline.

Bob stated that the vision of agglomeration aims to ensure that the economic benefits generated are not concentrated solely among a small number of large groups. Kadin is expected to promote an economic approach that prioritizes social benefits and the common good rather than merely free-market competition.

Through this revision of the legislation, Bob hopes that Kadin will be able to mobilize the public so that the vision of agglomeration can produce positive outcomes for the country. “This includes the direct involvement of the public, both as business actors and as beneficiaries of business activities,” he said.