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View all search resultsAccording to the business chamber, only around one-third of businesses planned to invest in the near future, while others are taking a wait-and-see approach.
he Indonesian Chamber of Commerce and Industry (Kadin) chairman Anindya Bakrie urged the government to strengthen early-warning systems and minimize disaster-related damage to protect logistics and maintain economic activity, particularly amid El Niño-related risks.
He cited Kadin’s Business Pulse report for the third quarter of this year, which found that nearly 58 percent of businesses surveyed had been affected by natural disasters and environmental disruptions, with higher operating costs among the main consequences.
The real estate sector reported the greatest impact from natural disasters, with 21.4 percent of respondents in the industry saying they had experienced disruptions caused by forest and land fires. Construction followed at 20.9 percent, and agriculture, forestry and fisheries at 18.8 percent.
Environmental disruptions have dampened property demand, slowing sales and weakening developers’ investment sentiment, the report noted. Meanwhile, 58.2 percent of construction businesses surveyed said they were unprepared for extreme natural disasters.
The chamber backed enforcement against companies violating environmental regulations to provide business certainty and prevent recurring fires.
Anindya also called for Indonesia to address haze-related concerns raised by Malaysia and Singapore through constructive dialogue within ASEAN, preserving regional trade and investment ties.
“Thank God, our relations with our neighbors, Malaysia and Singapore, are very good, and we must continue to maintain them. Trade within ASEAN is substantial, as is investment among its members. We must ensure these ties remain strong even when we face, as I would put it, challenges and disasters,” he said in Kadin’s office on Thursday.
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