Indonesian Political, Business & Finance News

Investment Ministry to Contact BYD Over Thuggery Disrupting Factory Construction in Subang

| Source: GALERT
Jakarta (ANTARA) - The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has stated it will communicate with Chinese automotive sector investor BYD to resolve issues of civil organisation (ormas) disruption during the construction of its factory in Subang, West Java.

"Today we will try to contact our colleagues from BYD to find out the situation," said Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, in Jakarta on Wednesday.

He said that after establishing communication with BYD, BKPM would coordinate with the Anti-Thuggery Task Force to ensure the disruptive activities could be handled effectively.

Furthermore, Nurul Ichwan said BKPM has consistently maintained that thuggery and illegal levies are highly disruptive not only in terms of comfort for business operators, but would also damage Indonesia's investment climate image in the eyes of the world.

"Anyone could pick up on the idea 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-related thuggery disrupting the Chinese electric car manufacturer's factory were previously raised by Deputy Chairman of the People's Consultative Assembly (MPR) Eddy Soeparno. Eddy revealed that the construction of BYD's factory in Subang, West Java had been disrupted by ormas thuggery. He received this information during an invitation from the Chinese Government as part of a visit to Shenzhen, China.

"There were problems related to ormas thuggery disrupting the construction of BYD's production facilities. The government needs to be firm in handling this issue — investors must not come to Indonesia and feel they lack security guarantees, which is the most fundamental requirement for investment to enter Indonesia," Eddy added via a video post on Instagram, quoted on Wednesday.

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 in Indonesia. BYD is reported to have committed investment of up to Rp11.7 trillion.
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