The Indonesian business community has expressed growing concern over President Prabowo Subianto's recent 'sudden' policy changes, which have led to widespread confusion among private sector leaders, according to Arsjad Rasjid, chairman of the Indonesian Business Council [1]. In an interview with Nikkei Asia on June 11, Rasjid highlighted that inconsistent government policies and a lack of clear direction are creating a 'dangerous distrust' between the state and the business sector [1].
Rasjid specifically pointed to recent turbulence in the rupiah and broader market woes as evidence of the market's sensitivity to unclear policy signals. He noted that Bank Indonesia's recent emergency rate hike of 0.25% was implemented to defend the rupiah, underscoring the urgency of the situation and the heightened anxiety among business executives regarding the government's ability to maintain macroeconomic stability [1].
To address these issues, Rasjid called for the creation of a presidential 'breakthrough office' to improve coordination and communication between the government and the private sector. He warned that ongoing policy uncertainty is undermining investor confidence and could negatively impact Indonesia's economic outlook if not addressed promptly [1]. Rasjid emphasized the need for clear and consistent messaging from the government to reassure both investors and business leaders [1].
The business lobby's warnings come at a critical time for Indonesia, as the country faces significant economic challenges and market volatility. Rasjid concluded that only through improved communication and decisive government action can trust be restored and Indonesia's economic growth sustained [1].
CONCLUSION
The Indonesian business lobby is urging the government to improve policy clarity and communication to restore investor confidence amid recent rupiah volatility and market uncertainty. Without decisive action, ongoing confusion could undermine Indonesia's economic outlook and erode trust between the state and the private sector.