BKPM Confirms Sharp Decline in Thuggery Cases Affecting Investors
JAKARTA — Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has revealed that cases of thuggery (premanisme) disturbing investors have decreased significantly.
Although he did not disclose detailed data on the decline, he confirmed the improvement through regular reports submitted by regional police chiefs (Kapolda) across the country.
"Every week our Kapolda colleagues provide reports, and the situation has significantly improved," said Todotua in Jakarta on Thursday (19 June), as quoted by Antara.
Todotua stated that the government is firmly combating thuggery that disrupts the investment climate domestically. Security concerns related to illegal permit costs have consistently been a topic of discussion with both domestic and foreign investors.
"Because we are firm when discussing investment — we also conduct roadshows abroad to meet investors — these are the issues they raise," he added.
Todotua emphasised that the government will always follow up on reports of thuggery, as such extortion would cause investors to withdraw from cooperation with Indonesia.
"We can calculate the costs associated with thuggery, illegal permits, and all these things. The figures amount to 15-20 per cent — how would anyone want to invest in our country?" he added.
**Thuggery at CAA Cilegon Factory**
Highlighting a prominent case of thuggery against investors that attracted considerable attention recently, Todotua said he is monitoring the ongoing case involving extortion of the Rp5 trillion Chandra Asri Alkali (CAA) factory construction project, which implicated the Cilegon Chamber of Commerce and Industry (Kadin) and several civil society organisations.
He said the legal process in the case is underway. Todotua also confirmed that his office continuously coordinates with the local police chief and that the situation is now becoming conducive.
The PT CAA project is included in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025.
The project, which falls under petrochemical product downstreaming, has potential export value of approximately Rp35-40 trillion through to 2040.
Meanwhile, according to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest contributing sectors were housing, industrial estates and offices at Rp4.8 trillion, followed by basic metals, metal goods, non-machinery and equipment at Rp4.1 trillion, and chemicals and pharmaceuticals at Rp3.7 trillion.
Although he did not disclose detailed data on the decline, he confirmed the improvement through regular reports submitted by regional police chiefs (Kapolda) across the country.
"Every week our Kapolda colleagues provide reports, and the situation has significantly improved," said Todotua in Jakarta on Thursday (19 June), as quoted by Antara.
Todotua stated that the government is firmly combating thuggery that disrupts the investment climate domestically. Security concerns related to illegal permit costs have consistently been a topic of discussion with both domestic and foreign investors.
"Because we are firm when discussing investment — we also conduct roadshows abroad to meet investors — these are the issues they raise," he added.
Todotua emphasised that the government will always follow up on reports of thuggery, as such extortion would cause investors to withdraw from cooperation with Indonesia.
"We can calculate the costs associated with thuggery, illegal permits, and all these things. The figures amount to 15-20 per cent — how would anyone want to invest in our country?" he added.
**Thuggery at CAA Cilegon Factory**
Highlighting a prominent case of thuggery against investors that attracted considerable attention recently, Todotua said he is monitoring the ongoing case involving extortion of the Rp5 trillion Chandra Asri Alkali (CAA) factory construction project, which implicated the Cilegon Chamber of Commerce and Industry (Kadin) and several civil society organisations.
He said the legal process in the case is underway. Todotua also confirmed that his office continuously coordinates with the local police chief and that the situation is now becoming conducive.
The PT CAA project is included in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025.
The project, which falls under petrochemical product downstreaming, has potential export value of approximately Rp35-40 trillion through to 2040.
Meanwhile, according to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest contributing sectors were housing, industrial estates and offices at Rp4.8 trillion, followed by basic metals, metal goods, non-machinery and equipment at Rp4.1 trillion, and chemicals and pharmaceuticals at Rp3.7 trillion.