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The Indonesian Employers Association (APINDO) Regional Board of North Sumatra held a Focus Group Discussion (FGD) on Tuesday, June 24, at its headquarters in the Jati Junction Building, Medan. The event, themed “Challenges, Obstacles, and Strategies to Boost North Sumatra’s Economy,” served as a platform to explore the root causes of issues faced by entrepreneurs in the region.

Vice Chairman of DPP APINDO North Sumatra, Ng Pin Pin, explained in his opening remarks that this was the first forum of its kind, initiated by the North Sumatra Police Chief. He emphasized the importance of such a discussion to directly hear from business actors about the challenges they face, including burdensome licensing processes, complex regulations, extortion, and high logistical costs. APINDO, he said, is committed to identifying and addressing these issues through dialogue.

Several key stakeholders and experts took part in the discussion. Among them were Iman Gunadi, M.Sc, Ph.D., Deputy Head of Bank Indonesia (BI) North Sumatra; Muhardi Akbar, Head of the Trade Compliance Supervision Center (BPTN) Medan; Ir. Sugianto Makmur, a local business representative; Dr. H. Faisal Arif Nasution, Head of the Investment and One-Stop Integrated Services Office (PMPTSP) North Sumatra; Dr. Arif Rahman from the University of North Sumatra (USU); and AKP Dr. Rismanto J. Purba of the North Sumatra Police’s Special Crime Directorate.

In his presentation, Iman Gunadi noted that global economic uncertainty had slightly eased following a temporary trade truce between the United States and China. However, he warned of the escalating conflict in the Middle East, which could significantly impact commodity-driven economies like North Sumatra, leading to increased production and distribution costs. Despite these concerns, he reported that inflation in North Sumatra remained under control as of May, and local consumer purchasing power was still relatively strong.

Dr. Faisal Arif Nasution highlighted that North Sumatra had been given an investment target of IDR 53 trillion in 2025, with IDR 17.4 trillion already achieved in the first quarter. He expressed optimism, citing strategic locations such as Special Economic Zones (KEK), the Medan Industrial Zone (KIM), and National Strategic Tourism Projects as key attractions for investors. He also addressed complaints from businesses regarding the licensing process, suggesting that many issues stemmed from incomplete documentation.

Entrepreneur Ir. Sugianto Makmur provided a stark account of the realities faced by business owners. He noted that while inflation data often dominates the conversation, actual revenues have dropped significantly for many businesses. He criticized the over-reliance on commodities such as palm oil, rubber, and paper, and called for greater support from authorities, urging them not to create additional burdens for entrepreneurs.

Academic Dr. Arif Rahman recommended several strategies to boost the regional economy, beginning with the need to address human resource disparities and align workforce supply with industry demand. He also proposed the creation of a regional innovation center based on North Sumatra’s leading commodities, as well as the formation of an innovation forum that brings together universities, business associations like APINDO and KADIN, and local governments.

Muhardi Akbar from BPTN Medan outlined the agency’s mandate, including oversight of non-customs area import trade, goods distribution, storage of essential commodities, and the regulation of domestic and international trade licenses, as outlined in the Ministry of Trade Regulation No. 55/2022.

AKP Dr. Rismanto J. Purba closed the session by stressing the police’s responsibility in maintaining public safety to ensure a positive investment climate. He stated that law enforcement should not be seen solely as punitive but as a force that protects stability and economic growth. “When public order is guaranteed, the economy thrives, and the people of North Sumatra can prosper,” he concluded.

source: legion-news.com