By Andree Surianta

East Asia Forum-July 16, 2025

Indonesia faces a critical challenge where entrepreneurial talents are channeled into unproductive activities like thuggery and rent-seeking rather than innovation. Mass organizations and business associations exploit weak institutions and complex regulations to extract resources instead of creating value. This diverts investment and undermines competitiveness. To redirect entrepreneurial energy productively, Indonesia must strengthen the rule of law, simplify regulations, reduce corruption, and create institutional rewards for innovation over political connections and legal manipulation. Read more at: https://eastasiaforum.org/2025/07/16/stemming-the-rise-of-destructive-entrepreneurship-in-indonesia/ First published in East Asia Forum