Investment Ministry Speaks Out on Thuggery Disrupting BYD Electric Car Factory in Subang
The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has addressed the issue of mass organisation thuggery disrupting the construction of Chinese electric car manufacturer BYD's factory in Subang, West Java.
Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, said that beyond the security concerns for companies already investing in the country, such disruptions could hamper potential investment.
"We at the Ministry of Investment have repeatedly stated frankly that thuggery and illegal levies are extremely disruptive," Nurul said when met at the BKPM office on Wednesday (23/4/2025).
According to him, reports of security disruptions caused by mass organisation thuggery paint a picture of investment in Indonesia being vulnerable to interference, even though attracting investment amid current global conditions is far from easy.
Nurul expressed confidence that Indonesia possesses strong competitiveness with competitive investment costs. However, illegal levies from certain individuals pose a distinct threat, including to job creation.
"We are in a situation now where attracting investment is not easy — all countries are becoming more protectionist. Even America, a country as wealthy and prosperous as it is, with excellent technology, still employs extraordinary protectionism to attract investment into its country," he said.
The thuggery by mass organisations disrupting the BYD factory was previously raised by Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno during a working visit to BYD's assembly centre in Shenzhen, China.
"There were problems related to mass organisation thuggery disrupting the construction of BYD's production facilities. I believe the government needs to be firm in handling this issue," Eddy said via his Instagram account, as quoted on Monday (21/4/2025).
Eddy further stated that such thuggery under the guise of mass organisations damages the investment climate in Indonesia, as it risks driving investors away due to a lack of security guarantees for investing in the country.
"We must not allow investors to come to Indonesia and feel they lack security guarantees. That is the most fundamental requirement for investment to enter Indonesia," he explained.
Despite the construction disruptions, PT BYD Motor Indonesia has committed to pressing ahead with the completion of its factory located in the Subang Smartpolitan Industrial Estate, West Java. The BYD manufacturing facility will have a production capacity of 150,000 electric vehicles per year.
Subang Smartpolitan is an industrial estate managed by PT Suryacipta Swadaya (SCS), an entity of PT Surya Semesta Internusa Tbk (SSIA). The construction of BYD's factory is expected to provide opportunities for local industry to position Indonesia as a global electric vehicle supplier. BYD is targeting total investment in Indonesia of more than US$1 billion, or approximately Rp16.8 trillion (assuming an exchange rate of Rp16,800 per US dollar).
Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, said that beyond the security concerns for companies already investing in the country, such disruptions could hamper potential investment.
"We at the Ministry of Investment have repeatedly stated frankly that thuggery and illegal levies are extremely disruptive," Nurul said when met at the BKPM office on Wednesday (23/4/2025).
According to him, reports of security disruptions caused by mass organisation thuggery paint a picture of investment in Indonesia being vulnerable to interference, even though attracting investment amid current global conditions is far from easy.
Nurul expressed confidence that Indonesia possesses strong competitiveness with competitive investment costs. However, illegal levies from certain individuals pose a distinct threat, including to job creation.
"We are in a situation now where attracting investment is not easy — all countries are becoming more protectionist. Even America, a country as wealthy and prosperous as it is, with excellent technology, still employs extraordinary protectionism to attract investment into its country," he said.
The thuggery by mass organisations disrupting the BYD factory was previously raised by Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno during a working visit to BYD's assembly centre in Shenzhen, China.
"There were problems related to mass organisation thuggery disrupting the construction of BYD's production facilities. I believe the government needs to be firm in handling this issue," Eddy said via his Instagram account, as quoted on Monday (21/4/2025).
Eddy further stated that such thuggery under the guise of mass organisations damages the investment climate in Indonesia, as it risks driving investors away due to a lack of security guarantees for investing in the country.
"We must not allow investors to come to Indonesia and feel they lack security guarantees. That is the most fundamental requirement for investment to enter Indonesia," he explained.
Despite the construction disruptions, PT BYD Motor Indonesia has committed to pressing ahead with the completion of its factory located in the Subang Smartpolitan Industrial Estate, West Java. The BYD manufacturing facility will have a production capacity of 150,000 electric vehicles per year.
Subang Smartpolitan is an industrial estate managed by PT Suryacipta Swadaya (SCS), an entity of PT Surya Semesta Internusa Tbk (SSIA). The construction of BYD's factory is expected to provide opportunities for local industry to position Indonesia as a global electric vehicle supplier. BYD is targeting total investment in Indonesia of more than US$1 billion, or approximately Rp16.8 trillion (assuming an exchange rate of Rp16,800 per US dollar).