BKPM to Contact BYD Over Thuggery Disrupting Factory Construction in Subang
JAKARTA — The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has confirmed it will communicate with Chinese automotive investor BYD to resolve issues of civil organisation (ormas) thuggery disrupting the construction of its factory in Subang, West Java.
"Today we will try to contact our colleagues at BYD to find out the situation," said Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, in Jakarta on Wednesday (23/4), as reported by Antara.
He said that after establishing communication with BYD, BKPM would coordinate with the Anti-Thuggery Task Force to ensure the disruptive activities are handled effectively.
Furthermore, BKPM has consistently stated that thuggery and illegal levies are highly disruptive not only to business comfort but would also damage Indonesia's investment climate image internationally.
"Anyone could pick up the narrative that Indonesia is unsafe, that Indonesia has a thuggery problem," he said.
Nurul Ichwan noted that in the current global economic conditions, Indonesia should be enhancing its competitiveness to more easily attract foreign investors. "In the current situation, attracting investment is not easy — all countries are becoming more protectionist," he said.
Reports of ormas thuggery at the Chinese electric vehicle manufacturer's factory were previously raised by Deputy Chairman of the People's Consultative Assembly (MPR) Eddy Soeparno.
"There were problems related to ormas thuggery disrupting the construction of BYD's production facilities in Subang," Eddy revealed through a video post on Instagram, quoted on Wednesday (23/4).
Eddy disclosed that the construction of BYD's factory in Subang, West Java, had been disrupted by ormas thuggery. He learned of this during an invitation from the Chinese Government as part of a visit to Shenzhen, China.
"The government needs to be firm in handling this problem. We cannot allow investors to come to Indonesia and feel they have no security guarantees — the most fundamental requirement for investment to enter Indonesia," he added.
BYD's major investment in an integrated smart city for industrial and commercial purposes in Indonesia, Subang Smartpolitan, is predicted to become a significant catalyst for economic growth. BYD is reportedly set to invest up to Rp11.7 trillion.
Separately, Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo) Moeldoko expressed support for the Governor of West Java in stamping out thuggery that could disrupt investment. He specifically referenced the thuggery case affecting the construction of BYD's manufacturing facility in Subang, West Java.
"I support what the Governor of West Java is doing — just stamp it out," said Moeldoko, as reported by Antara on Tuesday (22/4).
The former Presidential Chief of Staff lamented the thuggery affecting the construction of what is anticipated to become the largest automotive factory in ASEAN.
"We cannot have unemployment rising whilst, ironically, on the other side we need job opportunities, and when someone (an investor) comes offering those opportunities, they are disrupted by others. This is simply wrong," he explained.
According to him, rather than causing disruption, the public should play a role in creating a favourable investment climate, as the presence of investment would open new employment opportunities.
"I urge that amid a business climate requiring attention, all of us — the Indonesian public — must create a good investment climate," he added.
He noted that the EV factory would not only create thousands of new jobs but also enhance technology transfer and expertise in EV manufacturing. This would drive growth in supporting industries within the EV sector and even open new opportunities for local companies to participate in the global EV supply chain.
BYD plans to build a comprehensive EV ecosystem at Subang Smartpolitan, including a research and development centre and training facilities equipped with the latest energy-efficient and environmentally friendly technology.
Currently, BYD's factory site covers 108 hectares and the company has decided to expand to 126 hectares. BYD Indonesia plans to increase production capacity from an initial 150,000 units per year, with plans to develop battery facilities and premium Plug-in Hybrid Electric Vehicle (PHEV) production early next year.
The production capacity expansion is planned to increase the total workforce from 8,700 to 18,814 people. The factory is targeted to begin commercial production in early 2026.
"Today we will try to contact our colleagues at BYD to find out the situation," said Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, in Jakarta on Wednesday (23/4), as reported by Antara.
He said that after establishing communication with BYD, BKPM would coordinate with the Anti-Thuggery Task Force to ensure the disruptive activities are handled effectively.
Furthermore, BKPM has consistently stated that thuggery and illegal levies are highly disruptive not only to business comfort but would also damage Indonesia's investment climate image internationally.
"Anyone could pick up the narrative that Indonesia is unsafe, that Indonesia has a thuggery problem," he said.
Nurul Ichwan noted that in the current global economic conditions, Indonesia should be enhancing its competitiveness to more easily attract foreign investors. "In the current situation, attracting investment is not easy — all countries are becoming more protectionist," he said.
Reports of ormas thuggery at the Chinese electric vehicle manufacturer's factory were previously raised by Deputy Chairman of the People's Consultative Assembly (MPR) Eddy Soeparno.
"There were problems related to ormas thuggery disrupting the construction of BYD's production facilities in Subang," Eddy revealed through a video post on Instagram, quoted on Wednesday (23/4).
Eddy disclosed that the construction of BYD's factory in Subang, West Java, had been disrupted by ormas thuggery. He learned of this during an invitation from the Chinese Government as part of a visit to Shenzhen, China.
"The government needs to be firm in handling this problem. We cannot allow investors to come to Indonesia and feel they have no security guarantees — the most fundamental requirement for investment to enter Indonesia," he added.
BYD's major investment in an integrated smart city for industrial and commercial purposes in Indonesia, Subang Smartpolitan, is predicted to become a significant catalyst for economic growth. BYD is reportedly set to invest up to Rp11.7 trillion.
Separately, Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo) Moeldoko expressed support for the Governor of West Java in stamping out thuggery that could disrupt investment. He specifically referenced the thuggery case affecting the construction of BYD's manufacturing facility in Subang, West Java.
"I support what the Governor of West Java is doing — just stamp it out," said Moeldoko, as reported by Antara on Tuesday (22/4).
The former Presidential Chief of Staff lamented the thuggery affecting the construction of what is anticipated to become the largest automotive factory in ASEAN.
"We cannot have unemployment rising whilst, ironically, on the other side we need job opportunities, and when someone (an investor) comes offering those opportunities, they are disrupted by others. This is simply wrong," he explained.
According to him, rather than causing disruption, the public should play a role in creating a favourable investment climate, as the presence of investment would open new employment opportunities.
"I urge that amid a business climate requiring attention, all of us — the Indonesian public — must create a good investment climate," he added.
He noted that the EV factory would not only create thousands of new jobs but also enhance technology transfer and expertise in EV manufacturing. This would drive growth in supporting industries within the EV sector and even open new opportunities for local companies to participate in the global EV supply chain.
BYD plans to build a comprehensive EV ecosystem at Subang Smartpolitan, including a research and development centre and training facilities equipped with the latest energy-efficient and environmentally friendly technology.
Currently, BYD's factory site covers 108 hectares and the company has decided to expand to 126 hectares. BYD Indonesia plans to increase production capacity from an initial 150,000 units per year, with plans to develop battery facilities and premium Plug-in Hybrid Electric Vehicle (PHEV) production early next year.
The production capacity expansion is planned to increase the total workforce from 8,700 to 18,814 people. The factory is targeted to begin commercial production in early 2026.