Investment Ministry to Manage Business Partnership Mechanism to Combat Investor Intimidation
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has announced it will manage a business partnership mechanism between local entrepreneurs and investors to maintain a conducive investment climate in Indonesia.
The move comes in response to recent cases of thuggery targeting investors, most recently an act of intimidation carried out by individuals claiming to represent the Cilegon Chamber of Commerce against the management of PT Chengda, the main contractor of PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu explained in Jakarta on Wednesday (14/5/2025) that under this business partnership mechanism, regional governments through the One-Stop Investment and Integrated Services Office (DPMPTSP) would carry out permit selection, whilst investors would provide a list of work that could be undertaken by vetted local entrepreneurs.
"The regional government will carry out the selection process, and investors will also provide a list of work that can be contributed to local business operators," he said.
He stated that the business partnership would be managed through the Online Single Submission (OSS) system, with the aim of making investment project management in the regions transparent whilst mitigating activities outside proper channels.
Furthermore, he said the intimidation case involving individuals claiming to represent the Cilegon Chamber of Commerce had become a turning point for his office to follow up on such disruptive activities comprehensively.
The government is currently focused on boosting economic growth above 8 per cent, with one of its key strategies being to drive investment growth. Todotua said his office deeply regretted the incident in Cilegon and would hand the matter over to law enforcement authorities for further processing.
"The point is that going forward, this is about creating a deterrent effect," he said.
Previously, the Indonesian Chamber of Commerce and Industry (Kadin) announced it would draft standard operating procedures (SOPs) regarding Kadin's involvement in strategic projects following the incident involving members of Kadin Cilegon at the PT Chandra Asri Alkali (CAA) project.
The SOP initiative was announced alongside Kadin's firm stance rejecting all forms of pressure and intimidation that could disrupt the investment climate.
"To prevent similar incidents in the future, Kadin will draft SOPs for regional participation in investment projects, including a code of ethics for interactions with investors and contractors," read one of the points in Kadin Indonesia's official statement released in Jakarta on Wednesday (14/5/2025).
The move comes in response to recent cases of thuggery targeting investors, most recently an act of intimidation carried out by individuals claiming to represent the Cilegon Chamber of Commerce against the management of PT Chengda, the main contractor of PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu explained in Jakarta on Wednesday (14/5/2025) that under this business partnership mechanism, regional governments through the One-Stop Investment and Integrated Services Office (DPMPTSP) would carry out permit selection, whilst investors would provide a list of work that could be undertaken by vetted local entrepreneurs.
"The regional government will carry out the selection process, and investors will also provide a list of work that can be contributed to local business operators," he said.
He stated that the business partnership would be managed through the Online Single Submission (OSS) system, with the aim of making investment project management in the regions transparent whilst mitigating activities outside proper channels.
Furthermore, he said the intimidation case involving individuals claiming to represent the Cilegon Chamber of Commerce had become a turning point for his office to follow up on such disruptive activities comprehensively.
The government is currently focused on boosting economic growth above 8 per cent, with one of its key strategies being to drive investment growth. Todotua said his office deeply regretted the incident in Cilegon and would hand the matter over to law enforcement authorities for further processing.
"The point is that going forward, this is about creating a deterrent effect," he said.
Previously, the Indonesian Chamber of Commerce and Industry (Kadin) announced it would draft standard operating procedures (SOPs) regarding Kadin's involvement in strategic projects following the incident involving members of Kadin Cilegon at the PT Chandra Asri Alkali (CAA) project.
The SOP initiative was announced alongside Kadin's firm stance rejecting all forms of pressure and intimidation that could disrupt the investment climate.
"To prevent similar incidents in the future, Kadin will draft SOPs for regional participation in investment projects, including a code of ethics for interactions with investors and contractors," read one of the points in Kadin Indonesia's official statement released in Jakarta on Wednesday (14/5/2025).