Media

MATARAM — The Indonesian Employers Association (APINDO) in West Nusa Tenggara (NTB) is calling on the government not to increase the burden on businesses through tax policies amid continued economic pressure. The government is also being urged to allow greater flexibility in public spending and budget efficiency measures to help maintain economic activity.

APINDO NTB Advisory Board member Ni Ketut Wolini said business conditions had yet to fully recover. Economic pressures have been felt in NTB following a series of challenges in recent years, including the 2018 earthquake, the COVID-19 pandemic, and current economic conditions that have weakened household purchasing power.

“Things are certainly not going well at the moment. Purchasing power has declined. Some retail outlets and shopping centers have also reduced their workforce, while others have closed,” Wolini said, describing the challenges facing businesses.

According to Wolini, declining purchasing power is one of the most significant challenges being experienced by businesses. The situation has, in turn, affected companies’ ability to retain workers.

She said businesses that depend heavily on consumer spending are among those feeling the impact most quickly. Meanwhile, most businesses in NTB are micro, small and medium enterprises (MSMEs), which generally have limited access to capital and financial resilience.

APINDO is therefore encouraging the government to provide greater support and facilitation for MSMEs, both those that have already grown and those still struggling to remain in operation.

“APINDO hopes the government will provide greater facilitation for MSMEs, both those that have already developed and those that are seeking to grow,” she said.

Wolini, who previously served two terms as chairwoman of APINDO NTB, also urged the government to reconsider tax policies that could potentially add to the burden on businesses.

She said tax policies should take into account businesses’ ability to pay, allowing companies to maintain their operations and retain workers.

“Taxes should be reduced if possible. Businesspeople should not constantly be the ones bearing the burden of every tax increase,” she said in Mataram on Wednesday, September 23, 2026.

She said the pressure on businesses was being driven not only by domestic economic conditions but also by global and geopolitical developments, including armed conflicts. The effects can be felt across various sectors, including tourism, one of the key drivers of NTB’s economy.

According to Wolini, an increase in tourist arrivals benefits not only hotels and restaurants. Economic activity also spreads to suppliers serving the hospitality sector, traditional market traders, and MSMEs.

“When tourists come to Lombok, they need accommodation and restaurants. As hotels and restaurants grow, suppliers of vegetables, meat and other products also benefit. They purchase from MSMEs and traditional markets,” she explained.

In addition to tax policy, APINDO NTB is also calling on the government to provide greater room for public spending that can stimulate economic activity.

Wolini said excessively tight budget-efficiency measures could reduce the circulation of money within the region. A significant decline in government spending, she said, could affect businesses that depend on economic activity generated by both the government and the wider community.

“Regarding budget efficiency, spending should be reopened as soon as possible rather than being shut down entirely. If there is no circulation of money, the economies of Lombok and NTB will struggle,” she said.

She warned that if economic pressures continued without policies that provide businesses with sufficient room to operate, the risk of further job cuts would increase.

“If the economy continues like this, we will not be able to avoid layoffs,” she said.

Wolini said the pressure on businesses was also reflected in APINDO NTB’s membership figures. The number of active members currently stands at around 500 companies, down from more than 1,000 and, at one point, approximately 2,000 members.

According to Wolini, many of APINDO NTB’s remaining members are now from the MSME sector. The situation underscores the importance of policies that can support the sustainability of small businesses so they can continue to create jobs and drive economic activity, particularly at the regional level.

Source: Ekbis NTB