Thuggery Cases Disrupting Investors Have Significantly Declined, Says Deputy Investment Minister
Jakarta (ANTARA) - Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu said cases of thuggery disrupting investors have significantly declined.
"Every week our colleagues from the regional police chiefs provide reports, and the situation has now significantly improved," Todotua said in Jakarta on Thursday.
He said the government is firmly combating thuggery issues that disrupt the investment climate in the country. Todotua noted that security concerns related to illegal licensing costs are always discussed with investors, both domestic and foreign.
"Because we are serious about investment, we also conduct roadshows abroad to meet investors, and these are the kinds of issues that come up in discussions," Todotua said.
He explained that one case of thuggery that has drawn his attention involves the extortion of the Rp5 trillion Chandra Asri Alkali (CAA) factory construction project, implicating the Cilegon City Chamber of Commerce and Industry (Kadin) and several mass organisations. According to him, the case is currently undergoing legal proceedings. He also said he is in constant coordination with the local regional police chief, and the situation is now becoming more conducive.
Furthermore, Todotua affirmed that the government will always follow up on reports of thuggery. He said such extortion would cause investors to withdraw from cooperating with Indonesia.
"Because we can calculate the costs arising from thuggery, illegal licensing fees, and everything else. The figure is 15-20 per cent — how would anyone want to invest in our country?" Todotua added.
The PT CAA project is included in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation No. 12 of 2025. The project is also part of the downstreaming initiative promoted by the government through the development of petrochemical downstream products, with potential export value reaching approximately Rp35-40 trillion by 2040.
According to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest contributing investment sectors were housing, industrial estates and offices at Rp4.8 trillion, basic metals and metal goods (excluding machinery and equipment) at Rp4.1 trillion, and the chemical and pharmaceutical industry at Rp3.7 trillion.
"Every week our colleagues from the regional police chiefs provide reports, and the situation has now significantly improved," Todotua said in Jakarta on Thursday.
He said the government is firmly combating thuggery issues that disrupt the investment climate in the country. Todotua noted that security concerns related to illegal licensing costs are always discussed with investors, both domestic and foreign.
"Because we are serious about investment, we also conduct roadshows abroad to meet investors, and these are the kinds of issues that come up in discussions," Todotua said.
He explained that one case of thuggery that has drawn his attention involves the extortion of the Rp5 trillion Chandra Asri Alkali (CAA) factory construction project, implicating the Cilegon City Chamber of Commerce and Industry (Kadin) and several mass organisations. According to him, the case is currently undergoing legal proceedings. He also said he is in constant coordination with the local regional police chief, and the situation is now becoming more conducive.
Furthermore, Todotua affirmed that the government will always follow up on reports of thuggery. He said such extortion would cause investors to withdraw from cooperating with Indonesia.
"Because we can calculate the costs arising from thuggery, illegal licensing fees, and everything else. The figure is 15-20 per cent — how would anyone want to invest in our country?" Todotua added.
The PT CAA project is included in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation No. 12 of 2025. The project is also part of the downstreaming initiative promoted by the government through the development of petrochemical downstream products, with potential export value reaching approximately Rp35-40 trillion by 2040.
According to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest contributing investment sectors were housing, industrial estates and offices at Rp4.8 trillion, basic metals and metal goods (excluding machinery and equipment) at Rp4.1 trillion, and the chemical and pharmaceutical industry at Rp3.7 trillion.