Thuggery Cases Disrupting Investors Have Significantly Declined, Says Deputy Investment Minister
NERACA Jakarta - Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has 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 started to improve considerably," said Todotua in Jakarta on Thursday (19/6).
He stated that the government is firmly eradicating thuggery problems that disrupt the investment climate in the country. Todotua explained that security issues related to illegal licensing costs are always discussed with investors, both domestic and foreign.
"Because we are serious about investment, we also go on roadshows abroad to meet investors, and these are the issues being discussed," said Todotua.
He explained that one thuggery case that has drawn his attention involves 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 community organisations. According to him, the case is currently undergoing legal proceedings. He added that he is constantly coordinating with the local regional police chief and the situation is 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.
"We can calculate the costs arising from thuggery, illegal licensing and everything else. The figures amount to 15-20 per cent — how would anyone want to invest in our country?" Todotua added.
The PT CAA project is included in the National Medium-Term Development Plan (RPJMN) for 2025-2029 as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025. The project is also part of the government's downstreaming drive through petrochemical product development, 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 chemicals and pharmaceuticals at Rp3.7 trillion.
Previously, Minister of Industry Agus Gumiwang Kartasasmita stated that the government is committed to continuing to eradicate practices that could hinder investment entering Indonesia.
"I believe the government under President Prabowo Subianto is firmly committed to eradicating anything that undermines our investment climate," said Minister Agus when met in Jakarta on Wednesday (18/6), regarding the dissolution of the Illegal Levies Eradication Task Force (Saber Pungli) by President Prabowo Subianto.
The Minister assessed that this represents one form of the government's commitment to safeguarding Indonesia's investment climate from inhibiting factors, including thuggery and illegal levies.
"With a poor investment climate, investors simply will not come in," he added.
To that end, he said the government would continue to strengthen regulations and prevent similar practices from recurring, particularly in industrial zones.
"I believe the commitment from President Prabowo's government and all of us in eradicating actions or practices that essentially violate the law is growing stronger," said Minister Agus.
Previously, the government officially revoked the Illegal Levies Eradication Task Force on 6 May 2025 through Presidential Regulation Number 49 of 2025, revoking Presidential Regulation Number 87 of 2016. The task force was originally established in 2016 by the seventh President, Joko Widodo.
"Every week our colleagues from the regional police chiefs provide reports, and the situation has started to improve considerably," said Todotua in Jakarta on Thursday (19/6).
He stated that the government is firmly eradicating thuggery problems that disrupt the investment climate in the country. Todotua explained that security issues related to illegal licensing costs are always discussed with investors, both domestic and foreign.
"Because we are serious about investment, we also go on roadshows abroad to meet investors, and these are the issues being discussed," said Todotua.
He explained that one thuggery case that has drawn his attention involves 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 community organisations. According to him, the case is currently undergoing legal proceedings. He added that he is constantly coordinating with the local regional police chief and the situation is 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.
"We can calculate the costs arising from thuggery, illegal licensing and everything else. The figures amount to 15-20 per cent — how would anyone want to invest in our country?" Todotua added.
The PT CAA project is included in the National Medium-Term Development Plan (RPJMN) for 2025-2029 as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025. The project is also part of the government's downstreaming drive through petrochemical product development, 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 chemicals and pharmaceuticals at Rp3.7 trillion.
Previously, Minister of Industry Agus Gumiwang Kartasasmita stated that the government is committed to continuing to eradicate practices that could hinder investment entering Indonesia.
"I believe the government under President Prabowo Subianto is firmly committed to eradicating anything that undermines our investment climate," said Minister Agus when met in Jakarta on Wednesday (18/6), regarding the dissolution of the Illegal Levies Eradication Task Force (Saber Pungli) by President Prabowo Subianto.
The Minister assessed that this represents one form of the government's commitment to safeguarding Indonesia's investment climate from inhibiting factors, including thuggery and illegal levies.
"With a poor investment climate, investors simply will not come in," he added.
To that end, he said the government would continue to strengthen regulations and prevent similar practices from recurring, particularly in industrial zones.
"I believe the commitment from President Prabowo's government and all of us in eradicating actions or practices that essentially violate the law is growing stronger," said Minister Agus.
Previously, the government officially revoked the Illegal Levies Eradication Task Force on 6 May 2025 through Presidential Regulation Number 49 of 2025, revoking Presidential Regulation Number 87 of 2016. The task force was originally established in 2016 by the seventh President, Joko Widodo.