Thuggery Against Investors in Indonesia Beginning to Subside, Says Deputy Investment Minister
Deputy Minister of Investment and Downstreaming, who also serves as Deputy Head of BKPM, Todotua Pasaribu, stated that thuggery targeting investors in Indonesia has begun to subside. The government is said to be taking firm action to create a safe and comfortable investment climate.
"Every week our colleagues from the regional police chiefs provide reports, and the situation has significantly improved," Todotua told reporters in Jakarta on Thursday.
Todotua emphasised that thuggery has become a primary concern for the government as it frequently features among complaints from both domestic and foreign investors. He noted that the issue invariably arises during discussions and meetings with prospective investors.
"Because we are serious about investment, we also conduct roadshows abroad to meet investors, and these are the sorts of issues they raise," he said.
One concrete example that has drawn government attention is a case of alleged extortion targeting the Chandra Asri Alkali (CAA) factory construction project in Cilegon. The project, valued at Rp5 trillion, was reportedly disrupted by individuals from the Cilegon Chamber of Commerce and Industry (Kadin) and several civil society organisations.
According to Todotua, legal proceedings in the case are ongoing, and the government regularly coordinates with the police. He assured that conditions on the ground are now considerably more conducive.
Furthermore, Todotua highlighted the serious impact of thuggery and illegal licensing practices on investment interest in Indonesia. "We can calculate the costs associated with thuggery, illegal permits, and all these other issues. The figures amount to 15 to 20 per cent — how can we expect people to invest in our country?" he stressed.
"Every week our colleagues from the regional police chiefs provide reports, and the situation has significantly improved," Todotua told reporters in Jakarta on Thursday.
Todotua emphasised that thuggery has become a primary concern for the government as it frequently features among complaints from both domestic and foreign investors. He noted that the issue invariably arises during discussions and meetings with prospective investors.
"Because we are serious about investment, we also conduct roadshows abroad to meet investors, and these are the sorts of issues they raise," he said.
One concrete example that has drawn government attention is a case of alleged extortion targeting the Chandra Asri Alkali (CAA) factory construction project in Cilegon. The project, valued at Rp5 trillion, was reportedly disrupted by individuals from the Cilegon Chamber of Commerce and Industry (Kadin) and several civil society organisations.
According to Todotua, legal proceedings in the case are ongoing, and the government regularly coordinates with the police. He assured that conditions on the ground are now considerably more conducive.
Furthermore, Todotua highlighted the serious impact of thuggery and illegal licensing practices on investment interest in Indonesia. "We can calculate the costs associated with thuggery, illegal permits, and all these other issues. The figures amount to 15 to 20 per cent — how can we expect people to invest in our country?" he stressed.