For entrepreneurs, legal certainty is very important to ensure that business continues to run and survive amid global economic instability.

Without it, business calculations are difficult to make, investments are reluctant to flow, and export opportunities that have been pioneered can run aground.

Deputy Chairman of the Indonesian Employers Association (Apindo) Sanny Iskandar said that legal certainty is not only written on paper but is like a holy book whose orders are always followed.

He explained that there are two forms of certainty that every entrepreneur relies on, namely regulatory certainty and security certainty.

"Starting from rules that often overlap between ministries and institutions, both at the center and in the regions, to policy changes that come suddenly and are less consistent. It is often difficult to calculate in business planning," said Sanny when met after a press conference in Jakarta, Tuesday (07/29/2025).  

In addition, issues such as non-transparent licensing fees or the implementation of different rules in the field often leave entrepreneurs confused.

"Sometimes the implementation can also change midway," Sanny continued. 

In fact, he said, for entrepreneurs, investment calculations depend on predictions of costs and potential income.

If the cost of anticipating regulatory changes and security disturbances cannot be predicted, investment plans will be hampered. "That is what ultimately becomes a burden for businesses," he said.

A number of legal cases that have surfaced recently have begun to attract the attention of business actors. One of them is the naming of a suspect against Tom Lembong, who had served as Minister of Trade in the 2015-2016 period.

He was sentenced to 4.5 years in prison for alleged violations of sugar import regulations. Tom is considered to have issued import licenses when the national sugar stock was in surplus, so the policy was considered unnecessary and detrimental to the state.

In fact, the regulations governing sugar trading have undergone several changes, including the revision of the Minister of Trade and Industry Regulation No. 527 of 2004 which was later replaced by MOT 117 of 2015, and finally updated through MOT 14 of 2020.

Feel safe

Sanny continued that the other most important factor in doing business is security. Sanny emphasized that disturbances can arise from many parties and in various forms, including political factors.

"Politics can be politicized, yes," he said. 

Although not always directly related to government stability, various pressures or disturbances on the ground make security costs difficult to calculate. Consequently, it becomes difficult for entrepreneurs to ascertain revenue and cost projections, two crucial components before deciding on an investment.

"First, yes, providing certainty in terms of policies and regulations and certainty in terms of security issues," said Sanny. 

He reminded the importance of the role of the authorities to maintain security, as well as the hope that the policies made are truly consistent and their implementation is harmonized between the center and the regions.

Concrete steps such as simplifying licensing and ensuring the implementation of regulations such as the renewal of the Domestic Content Level (TKDN) after the reciprocal tariff agreement with the US, are expected to be announced soon, in order to provide a sense of security for investors.

"In the midst of global dynamics and domestic pressures, consistent policy reforms, clear regulations, and maintained security are no longer just options, but urgent needs," he said.

Domestic housekeeping

Apindo Chairperson Shinta Kamdani added that the success of foreign diplomacy, such as efforts to get lower export tariffs to America, must be balanced by domestic improvements.

According to him, export and investment competitiveness cannot rely solely on tariff incentives.

"But it must also be done with legal certainty, logistical efficiency, mineral energy, labor costs, and industry-friendly regulations," said Shinta.

Without strong legal certainty, export and investment opportunities that have been pioneered may be hampered at the implementation stage.

"Structural information, especially today's design cloud, is the main requirement for us to be able to create a national economic foundation," he said.

This strong foundation is believed to help the business world survive and grow, even though global and domestic pressures have not subsided.

The government also realizes the importance of credible regulations. Minister of Finance Sri Mulyani, through the Financial System Stability Committee (KSSK) press conference, emphasized that the government together with Bank Indonesia, the Financial Services Authority, and the Deposit Insurance Corporation are committed to completing the implementing regulations mandated by the P2SK law.

"We will continue to consult with various parties including industry and the public, so that the process and implementing regulations can be designed in a credible manner," said Sri Mulyani when summarizing the KSSK's submission in a press conference (28/07).

Sri Mulyani also explained that the government does not rely solely on fiscal policy. From incentives for the renewable energy sector, public housing programs, to cross-ministerial cooperation, everything is designed to keep the real sector moving.

The coordination of fiscal, monetary, and regulatory policies is expected to maintain financial system stability while encouraging job creation.

The latest figures also show cautionary signals. Indonesia's manufacturing PMI is still below 50, indicating a contraction of the manufacturing sector.

"We hope that the theme of economic growth is driven through fiscal, monetary, OJK, and regulatory support," said Ms Indrawati.

The hope is that coordinated and responsive policies can create confidence for businesses.

On the ground, the challenges faced by the business world are increasingly evident. IMD Competitiveness Data Ranking data shows that Indonesia still has a lot of homework to do: institutional framework ranking in 51st position (down 26 places), business legislation in 49th position (down 7 places), and societal framework in 47th position (down 8 places).

Executive Director of the Center of Economics Law Studies (Celios) Bhima Yudhistira said, there are three problems with licensing.

"Licensing has too many windows and bureaucratic costs are expensive, the bankruptcy process is long, the processing of export-import documents is quite complicated. These three things are urgently reformed," said Executive Director of the Center of Economics Law Studies (Celios) Bhima Yudhistira.

All of these measures, according to him, are important to lower the risks and unexpected costs faced by businesses. Without these reforms, it will be difficult to attract new investment.