Thuggery by Civic Organisations Threatens Foreign Investment Climate in Indonesia
JAKARTA - Thuggery conducted under the guise of civic organisations (ormas) has become a spectre haunting foreign investment in Indonesia. Such acts of intimidation have disrupted factory construction activities through illegal levies demanded from factory owners.
Most recently, the factory of Chinese electric vehicle manufacturer BYD experienced intimidation by ormas at its facility in Subang, West Java. The information was first revealed by Deputy Chairman 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 ormas thuggery disrupting the construction of BYD's production facilities. I believe the government needs to be firm in handling this issue," said Eddy via his Instagram account, quoted on Monday (21/4/2025).
Eddy added that such thuggery under the cover of ormas is damaging Indonesia's investment climate, as it has the potential to drive 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 have no security guarantees. That is the most fundamental requirement for investment to enter Indonesia," he explained.
Reports of ormas thuggery have also emerged at the factory of Vietnamese electric vehicle manufacturer VinFast. Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo), Moeldoko, confirmed that beyond BYD's facility, ormas intimidation had also disrupted the construction of VinFast's factory.
"I received a report that VinFast also experienced disturbances, but I have helped communicate this to local authorities," said Moeldoko in Jakarta, quoted on Wednesday (23/4/2025).
The presence of ormas-linked thuggery has not only disrupted investment but also threatened public safety. Several ormas members were involved in a mob attack targeting a police officer in Depok, West Java. The incident turned violent, with the destruction and burning of the officer's vehicle.
Head of Public Relations at Jakarta Metropolitan Police, Commissioner Ade Ary Syam Indradi, said five suspects with the initials RS, GR, ASR, LA and LS had been arrested. Four of the five were members of the GRIB ormas, Harjamukti branch, whilst ASR was a private sector employee.
The assault occurred on 18 April 2025 at approximately 02:30 local time, when the victim, a police officer, had just completed duty at Depok Police Station before being ambushed.
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has expressed concern that security disruptions from ormas thuggery could damage Indonesia's investment climate. Deputy for Investment Promotion at the Ministry, Nurul Ichwan, said the issue extends beyond the security of companies already invested domestically — it could also hinder potential new investment.
"We at the Ministry of Investment frankly say that thuggery and illegal levies are issues we have raised repeatedly — they are extremely disruptive," said Nurul at the BKPM office on Wednesday (23/4/2025).
He noted that attracting investment amid current global conditions is not easy, particularly as all countries are becoming increasingly protectionist. "Even America, as wealthy and prosperous as it is, with its excellent technology, still maintains extraordinary protectionism to attract investment," he said.
The Indonesian Industrial Estate Association (HKI) has also raised concerns about the issue. HKI Chairman Sanny Iskandar said ormas have repeatedly staged demonstrations within industrial estates, obstructing factory operations. Several investors have written directly to President Prabowo Subianto to seek security guarantees.
"Letters from estate managers no longer seem effective, so several investors have ended up writing directly to the president and meeting with him. Some have also gone directly to BKPM requesting security guarantees," said Sanny in Jakarta on Thursday (6/2/2025).
Industrial estates across Bekasi, Karawang, Batam and East Java have become targets. Sanny reported that some factories within industrial estates had been sealed off and effectively taken over, with containers unable to leave premises. The ormas groups demand a share of construction contracts, catering, transportation and raw material procurement.
Sanny estimated that the potential losses — including industries leaving estates and investors cancelling plans to enter — could amount to hundreds of trillions of rupiah.
Most recently, the factory of Chinese electric vehicle manufacturer BYD experienced intimidation by ormas at its facility in Subang, West Java. The information was first revealed by Deputy Chairman 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 ormas thuggery disrupting the construction of BYD's production facilities. I believe the government needs to be firm in handling this issue," said Eddy via his Instagram account, quoted on Monday (21/4/2025).
Eddy added that such thuggery under the cover of ormas is damaging Indonesia's investment climate, as it has the potential to drive 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 have no security guarantees. That is the most fundamental requirement for investment to enter Indonesia," he explained.
Reports of ormas thuggery have also emerged at the factory of Vietnamese electric vehicle manufacturer VinFast. Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo), Moeldoko, confirmed that beyond BYD's facility, ormas intimidation had also disrupted the construction of VinFast's factory.
"I received a report that VinFast also experienced disturbances, but I have helped communicate this to local authorities," said Moeldoko in Jakarta, quoted on Wednesday (23/4/2025).
The presence of ormas-linked thuggery has not only disrupted investment but also threatened public safety. Several ormas members were involved in a mob attack targeting a police officer in Depok, West Java. The incident turned violent, with the destruction and burning of the officer's vehicle.
Head of Public Relations at Jakarta Metropolitan Police, Commissioner Ade Ary Syam Indradi, said five suspects with the initials RS, GR, ASR, LA and LS had been arrested. Four of the five were members of the GRIB ormas, Harjamukti branch, whilst ASR was a private sector employee.
The assault occurred on 18 April 2025 at approximately 02:30 local time, when the victim, a police officer, had just completed duty at Depok Police Station before being ambushed.
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has expressed concern that security disruptions from ormas thuggery could damage Indonesia's investment climate. Deputy for Investment Promotion at the Ministry, Nurul Ichwan, said the issue extends beyond the security of companies already invested domestically — it could also hinder potential new investment.
"We at the Ministry of Investment frankly say that thuggery and illegal levies are issues we have raised repeatedly — they are extremely disruptive," said Nurul at the BKPM office on Wednesday (23/4/2025).
He noted that attracting investment amid current global conditions is not easy, particularly as all countries are becoming increasingly protectionist. "Even America, as wealthy and prosperous as it is, with its excellent technology, still maintains extraordinary protectionism to attract investment," he said.
The Indonesian Industrial Estate Association (HKI) has also raised concerns about the issue. HKI Chairman Sanny Iskandar said ormas have repeatedly staged demonstrations within industrial estates, obstructing factory operations. Several investors have written directly to President Prabowo Subianto to seek security guarantees.
"Letters from estate managers no longer seem effective, so several investors have ended up writing directly to the president and meeting with him. Some have also gone directly to BKPM requesting security guarantees," said Sanny in Jakarta on Thursday (6/2/2025).
Industrial estates across Bekasi, Karawang, Batam and East Java have become targets. Sanny reported that some factories within industrial estates had been sealed off and effectively taken over, with containers unable to leave premises. The ormas groups demand a share of construction contracts, catering, transportation and raw material procurement.
Sanny estimated that the potential losses — including industries leaving estates and investors cancelling plans to enter — could amount to hundreds of trillions of rupiah.