BYD and VinFast Factory Construction in Subang Disrupted by Thuggery from Civil Organisations
The BYD electric car factory currently under construction in Subang, West Java, has experienced serious disruptions involving civil organisations (ormas). The incident not only adds to the list of problems faced by foreign companies in Indonesia but also raises concerns about the country's investment climate.
The thuggery carried out by ormas around the BYD factory construction site includes intimidation and coercion, which has the potential to damage Indonesia's reputation as an investment destination.
"Disruptions of this nature are extremely detrimental, both for the investing companies and for Indonesia's image in the eyes of the world," said Nurul Ichwan, Deputy for Investment Promotion at the Investment Coordinating Board (BKPM), in an official statement. He added that such problems can create uncertainty that harms the business community.
The disruption has not been limited to BYD. Vietnamese carmaker VinFast, also located in Subang, has experienced similar problems. Construction of the VinFast factory, with an initial investment of US$200 million, has been hampered by the same type of actions, originating from ormas allegedly engaged in thuggery for financial gain. This adds to the long list of challenges faced by foreign companies attempting to invest in Indonesia.
"VinFast commenced this project with good intentions to contribute to the Indonesian economy, but actions like these make us feel intimidated," said a VinFast source who requested anonymity. The source also mentioned that the company is seeking solutions to ensure factory construction can proceed smoothly despite the obstacles.
In response to the disruptions, BKPM stated it would immediately coordinate with the relevant authorities, including the Anti-Thuggery Task Force, to address the issue.
The thuggery carried out by ormas around the BYD factory construction site includes intimidation and coercion, which has the potential to damage Indonesia's reputation as an investment destination.
"Disruptions of this nature are extremely detrimental, both for the investing companies and for Indonesia's image in the eyes of the world," said Nurul Ichwan, Deputy for Investment Promotion at the Investment Coordinating Board (BKPM), in an official statement. He added that such problems can create uncertainty that harms the business community.
The disruption has not been limited to BYD. Vietnamese carmaker VinFast, also located in Subang, has experienced similar problems. Construction of the VinFast factory, with an initial investment of US$200 million, has been hampered by the same type of actions, originating from ormas allegedly engaged in thuggery for financial gain. This adds to the long list of challenges faced by foreign companies attempting to invest in Indonesia.
"VinFast commenced this project with good intentions to contribute to the Indonesian economy, but actions like these make us feel intimidated," said a VinFast source who requested anonymity. The source also mentioned that the company is seeking solutions to ensure factory construction can proceed smoothly despite the obstacles.
In response to the disruptions, BKPM stated it would immediately coordinate with the relevant authorities, including the Anti-Thuggery Task Force, to address the issue.