Investment Ministry Warns Thuggery by Mass Organisations Threatens Indonesia's Investment Climate
JAKARTA — The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has expressed concern that security disruptions caused by thuggery under the guise of mass organisations (ormas) could undermine Indonesia's investment climate. The issue has gained renewed attention following recent incidents at the Chinese electric vehicle manufacturer BYD's factory project in Subang, West Java.
Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, said that beyond threatening the security of companies already investing domestically, such disruptions could also hamper potential investment.
"We at the Ministry of Investment have repeatedly stated frankly that the issue of thuggery and illegal levies is extremely disruptive," Nurul said when met at the BKPM office on Wednesday (23/4/2025).
According to him, reports of security disruptions caused by thuggish behaviour from mass organisations paint a picture of investment in Indonesia being vulnerable to interference. Attracting investment amid current global conditions is already no easy task, he noted.
Nurul expressed confidence that Indonesia possesses strong competitiveness with competitive investment costs. However, illegal levies imposed by certain individuals pose a distinct threat, including to employment generation.
"We are in a situation now where attracting investment is not easy. All countries are becoming increasingly protectionist. Even America, as wealthy and prosperous as it is, with its excellent technology, still employs extraordinary protectionism to draw investment into the country," he said.
Regarding BYD, which has commenced construction of its factory, Nurul confirmed that the process continues to progress. His office would also conduct direct inspections of conditions on the ground.
"We will coordinate with the Task Force so that the matter is handled by those with the proper authority," he said.
Previously, Head of Marketing, PR and Government at BYD Indonesia, Luther T. Panjaitan, stated that the construction of the company's electric vehicle factory in Subang would proceed according to the established timeline.
"To date, all preparation and construction processes are progressing well," Luther told Bisnis when asked to comment on the mass organisation thuggery on Tuesday (22/4/2025).
BYD has not been deterred by the thuggish actions of mass organisations that could potentially obstruct construction activities at its factory. The company remains committed to completing the factory construction by the end of 2025.
"We are focused on completing the construction process in line with our commitment to the government," Luther explained.
Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, said that beyond threatening the security of companies already investing domestically, such disruptions could also hamper potential investment.
"We at the Ministry of Investment have repeatedly stated frankly that the issue of thuggery and illegal levies is extremely disruptive," Nurul said when met at the BKPM office on Wednesday (23/4/2025).
According to him, reports of security disruptions caused by thuggish behaviour from mass organisations paint a picture of investment in Indonesia being vulnerable to interference. Attracting investment amid current global conditions is already no easy task, he noted.
Nurul expressed confidence that Indonesia possesses strong competitiveness with competitive investment costs. However, illegal levies imposed by certain individuals pose a distinct threat, including to employment generation.
"We are in a situation now where attracting investment is not easy. All countries are becoming increasingly protectionist. Even America, as wealthy and prosperous as it is, with its excellent technology, still employs extraordinary protectionism to draw investment into the country," he said.
Regarding BYD, which has commenced construction of its factory, Nurul confirmed that the process continues to progress. His office would also conduct direct inspections of conditions on the ground.
"We will coordinate with the Task Force so that the matter is handled by those with the proper authority," he said.
Previously, Head of Marketing, PR and Government at BYD Indonesia, Luther T. Panjaitan, stated that the construction of the company's electric vehicle factory in Subang would proceed according to the established timeline.
"To date, all preparation and construction processes are progressing well," Luther told Bisnis when asked to comment on the mass organisation thuggery on Tuesday (22/4/2025).
BYD has not been deterred by the thuggish actions of mass organisations that could potentially obstruct construction activities at its factory. The company remains committed to completing the factory construction by the end of 2025.
"We are focused on completing the construction process in line with our commitment to the government," Luther explained.