Thuggery by Mass Organisations Threatens Indonesia's Investment Climate Amid BYD Factory Disruption
Jakarta — The issue of thuggery has once again come to the fore, but rather than on a personal scale, this time it is said to be shaking Indonesia's image in the eyes of investors. The incident in question involves disruption by mass organisations against the construction of a factory belonging to Chinese electric vehicle manufacturer BYD.
The matter came to light when Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno disclosed the incident during an invitation from the Chinese Government as part of a visit to Shenzhen, China. Eddy urged the government to take firm action against acts of thuggery carried out in the name of mass organisations. He stressed that a sense of security must be strengthened so that investors feel comfortable investing their capital in Indonesia.
"There was an issue related to thuggery, mass organisations disrupting the construction of BYD's production facilities. I think the response must be firm. The government needs to be decisive in handling this problem," Eddy said.
"We must not allow investors to come to Indonesia only to feel they have no security guarantees. Security guarantees are the most fundamental requirement for investment to enter Indonesia," he continued.
The Ministry of Investment and Downstreaming/BKPM responded swiftly. Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, said he would look into the case and coordinate with BYD.
"If that is the situation, God willing, I will try to contact our colleagues at BYD today to find out the situation, because we need to ask BYD directly. That does not mean the reports are entirely inaccurate, but we need to know the details," Nurul said on Wednesday (23 April 2025).
Nurul also noted that thuggery adds to investment costs in the country, which ultimately makes it difficult for people to find employment.
"Those who contribute to the high economic and investment costs in Indonesia must consider that they bear an enormous burden of responsibility towards those seeking employment. We must not allow investors to leave Indonesia, fail to build their investments, and close off job opportunities for thousands of our compatriots who should be able to work there," Nurul added.
Meanwhile, Indonesia's economy has been accused of only looking good on paper. President Prabowo Subianto addressed this during a mass planting event in the Ogan Ilir region of South Sumatra on Wednesday (23 April).
"Some say I am being deceived by my ministers. Some say Indonesia's economy is only good on paper. No. It is right before our eyes. Our economy is right before our eyes. Our economy is strong and will grow stronger still," Prabowo said.
On a related note, the International Monetary Fund (IMF) has forecast that Indonesia's economic growth will reach only 4.7 per cent, owing to the effects of reciprocal tariffs imposed by Donald Trump. Furthermore, the IMF projects that unemployment in Indonesia will rise slightly from the previous year to 5.0 per cent.
The matter came to light when Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno disclosed the incident during an invitation from the Chinese Government as part of a visit to Shenzhen, China. Eddy urged the government to take firm action against acts of thuggery carried out in the name of mass organisations. He stressed that a sense of security must be strengthened so that investors feel comfortable investing their capital in Indonesia.
"There was an issue related to thuggery, mass organisations disrupting the construction of BYD's production facilities. I think the response must be firm. The government needs to be decisive in handling this problem," Eddy said.
"We must not allow investors to come to Indonesia only to feel they have no security guarantees. Security guarantees are the most fundamental requirement for investment to enter Indonesia," he continued.
The Ministry of Investment and Downstreaming/BKPM responded swiftly. Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, said he would look into the case and coordinate with BYD.
"If that is the situation, God willing, I will try to contact our colleagues at BYD today to find out the situation, because we need to ask BYD directly. That does not mean the reports are entirely inaccurate, but we need to know the details," Nurul said on Wednesday (23 April 2025).
Nurul also noted that thuggery adds to investment costs in the country, which ultimately makes it difficult for people to find employment.
"Those who contribute to the high economic and investment costs in Indonesia must consider that they bear an enormous burden of responsibility towards those seeking employment. We must not allow investors to leave Indonesia, fail to build their investments, and close off job opportunities for thousands of our compatriots who should be able to work there," Nurul added.
Meanwhile, Indonesia's economy has been accused of only looking good on paper. President Prabowo Subianto addressed this during a mass planting event in the Ogan Ilir region of South Sumatra on Wednesday (23 April).
"Some say I am being deceived by my ministers. Some say Indonesia's economy is only good on paper. No. It is right before our eyes. Our economy is right before our eyes. Our economy is strong and will grow stronger still," Prabowo said.
On a related note, the International Monetary Fund (IMF) has forecast that Indonesia's economic growth will reach only 4.7 per cent, owing to the effects of reciprocal tariffs imposed by Donald Trump. Furthermore, the IMF projects that unemployment in Indonesia will rise slightly from the previous year to 5.0 per cent.