Indonesian Political, Business & Finance News

BYD Factory Construction in Subang Reportedly Disrupted by Thuggery from Civil Organisation Elements

| Source: GALERT
Jakarta — The construction of a BYD car factory in Subang, West Java, has reportedly been disrupted by acts of thuggery carried out by elements of civil organisations (ormas). The news was conveyed by Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno during an invitation from the Chinese Government as part of a visit to Shenzhen, China.

In response, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, acknowledged he was aware of the reports and would immediately confirm the situation with BYD.

"If that is the case, God willing, I will try to contact our colleagues at BYD today to find out the situation, because we must ask BYD directly. It doesn't mean the news is not 100 per cent true, but we need to know the details," he said at his office in South Jakarta on Wednesday (23 April 2025).

Nurul stated that the issues of thuggery and illegal levies are highly disruptive to investment. The negative effects are felt not only by companies but also damage Indonesia's image in the eyes of investors. Particularly in the current climate, attracting investment to Indonesia is no easy task, with many countries becoming increasingly protectionist and competing to draw investment to their own shores.

"Indonesia is perceived as unsafe, with thuggery and all manner of problems. This requires understanding from many parties that in our current situation, attracting investment is not easy," he said.

Nurul assessed that thuggery by ormas elements also contributes to the high cost of investment in the country. He stated that the behaviour of these ormas elements contributes to the difficulty people face in finding employment.

"Those who contribute to the high economic and investment costs in Indonesia must realise that they bear an extraordinary burden of guilt towards those seeking employment. We must not allow investors to leave Indonesia, fail to build their investments, and close off job opportunities for thousands of our fellow citizens who should be able to work there," Nurul added.

The reports of alleged thuggery by ormas during the construction of the BYD factory were raised by Deputy Speaker of the MPR Eddy Soeparno during the Chinese Government's invitation as part of a visit to Shenzhen, China. Eddy said the government must be firm against acts of thuggery by ormas elements. According to him, security guarantees are a fundamental requirement for attracting investment.

"There were problems related to thuggery, with ormas disrupting the construction of BYD's production facilities. I believe the government must be firm and address this issue," Eddy said.

"We must not allow investors to come to Indonesia and feel they do not receive security guarantees. Security guarantees are the most fundamental requirement for investment to enter Indonesia," he added.

BYD's electric vehicle production facility is being built in the Phase 2 area of Subang Smartpolitan, West Java. BYD has committed investment of up to Rp 11.7 trillion for the project.
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