The House Endorses Kadin Law Overhaul as House-Initiated Bill

JAKARTA, Investortrust.id — The House of Representatives of the Republic of Indonesia (DPR RI) has formally approved the revision of Law No. 1 of 1987 on the Indonesian Chamber of Commerce and Industry (Kadin) to become an official House-initiated bill (RUU usul inisiatif DPR).

The decision was adopted by acclamation during a plenary session chaired by DPR Deputy Speaker Cucun Ahmad Syamsurizal at the Parliament Complex in Senayan, Jakarta, on Tuesday, Sept. 22, 2026. House Speaker Puan Maharani and Deputy Speaker Saan Mustopa attended the session alongside 195 lawmakers.

As the primary statutory umbrella for private enterprise in Southeast Asia’s largest economy, Kadin’s foundational charter has remained untouched for nearly four decades. Updating the 1987 framework is intended to recalibrate corporate representation against emerging global trade realignments, digital commerce, and multinational supply chains, while establishing a more defined statutory footing for public-private policymaking.

Legislative Timeline and Modernization Drive

Drafting of the bill began in early September 2026 under DPR Commission VI. Lawmakers initially invited national and provincial leaders from Kadin Indonesia to absorb industry input on Wednesday, Sept. 2, 2026, followed by academic hearings to refine the bill's technical provisions.

Prior to the plenary vote, the House Legislation Body (Baleg) concluded the harmonization, formulation, and consolidation of the bill's conceptual framework on Monday night, Sept. 21, 2026.

Adisatrya Suryo Sulisto, Chairman of the Working Committee for the Drafting of the Kadin Bill, noted that overhauling the outdated statute is urgent so the chamber can navigate contemporary economic headwinds. Adisatrya stated that Kadin must develop capabilities suited for globalization, digitalization, artificial intelligence, and broader integration into international value chains to lift national competitiveness.

Empowering Small Enterprises Beyond the Domestic Market

Parliamentary discussions also emphasized bolstering smaller commercial enterprises. Baleg Deputy Chairman Sturman Panjaitan stressed that the updated legal architecture must compel Kadin to deliver concrete support for micro, small, and medium enterprises (MSMEs) aiming for international expansion.

The Indonesian Democratic Party of Struggle (PDI-P) politician noted that small businesses must not merely remain comfortable in the domestic market, but should actively harness digitized regulatory frameworks to capture global market share.

Beyond trade development, the institutional revisions seek to reinforce Kadin's strategic advisory role alongside the central government in trade, industrial policy, and broader economic planning.

Kadin Pushes for Regional Reach and Independence

Kadin Indonesia Chairman Anindya Novyan Bakrie welcomed the parliament's decision, confirming the chamber's commitment to engage through every stage of upcoming legislative debates.

Anindya explained that the organization's policy inputs focus primarily on strengthening domestic cooperatives and MSMEs, noting that small businesses account for roughly 92% of all enterprise activity nationwide and require targeted intervention to scale up.

Kadin is seeking specific statutory authority to more effectively assist businesses across provincial regions, accelerate employment generation, and lift national investment and cross-border trade, while preserving the chamber's non-budgetary and independent status.