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 that cases of thuggery disrupting investors have significantly declined.
"Every week our colleagues from the regional police chiefs provide reports, and the situation has greatly improved now," said Todotua in Jakarta on Thursday.
He said the government is firmly cracking down on thuggery problems that disturb the investment climate in the country. Todotua explained that security issues related to illegal licensing costs are always a topic of discussion with investors, both domestic and foreign.
"Because we are firm when it comes to investment — we also go on roadshows abroad to meet investors, and these are the issues they raise," said Todotua.
He explained that one thuggery case that has drawn particular attention is the extortion of the Chandra Asri Alkali (CAA) factory construction project worth Rp5 trillion, involving 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 coordinates regularly with the local regional police chief, and the situation is now becoming 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, can't we — the costs arising from thuggery, illegal licensing fees, and all the rest. The figure is 15-20 per cent. How can people 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 Number 12 of 2025. The PT CAA project is also part of the downstreaming initiatives being 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, 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 greatly improved now," said Todotua in Jakarta on Thursday.
He said the government is firmly cracking down on thuggery problems that disturb the investment climate in the country. Todotua explained that security issues related to illegal licensing costs are always a topic of discussion with investors, both domestic and foreign.
"Because we are firm when it comes to investment — we also go on roadshows abroad to meet investors, and these are the issues they raise," said Todotua.
He explained that one thuggery case that has drawn particular attention is the extortion of the Chandra Asri Alkali (CAA) factory construction project worth Rp5 trillion, involving 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 coordinates regularly with the local regional police chief, and the situation is now becoming 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, can't we — the costs arising from thuggery, illegal licensing fees, and all the rest. The figure is 15-20 per cent. How can people 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 Number 12 of 2025. The PT CAA project is also part of the downstreaming initiatives being 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, metal goods excluding machinery and equipment at Rp4.1 trillion, and the chemical and pharmaceutical industry at Rp3.7 trillion.