Thuggery Declines as Government Assures Investment Safety in Indonesia
Deputy Minister of Investment and Downstreaming, who also serves as Deputy Head of BKPM, Todotua Pasaribu, stated that cases of thuggery affecting investors have seen a significant decline in recent weeks.
"Every week our colleagues from the regional police chiefs report that conditions have improved considerably," said Todotua, as quoted by Antara on Thursday (19/6).
Todotua affirmed that the government has seriously been eradicating thuggery practices long known for imposing illegal levies, which have the potential to undermine the national investment climate. He noted that security issues, including illegal levies and unlawful permits, are consistently raised as key topics during every government road show with both domestic and foreign investors.
One major case currently being handled involves alleged extortion targeting the Rp 5 trillion Chandra Asri Alkali (CAA) factory construction project, implicating the Cilegon Chamber of Commerce and several mass organisations. Todotua confirmed the case has now entered the legal process stage and the situation on site is relatively conducive.
The government emphasised that reports related to thuggery will be acted upon swiftly. Todotua highlighted that such illegal charges can add 15 to 20 per cent to investment costs, raising concerns that investors may abandon plans to invest in Indonesia.
The CAA project itself is part of the National Strategic Projects under the 2025–2029 National Medium-Term Development Plan (Presidential Regulation No. 12/2025). The development supports petrochemical downstreaming with export potential reaching Rp 35–40 trillion by 2040.
BKPM data showed that investment realisation in Banten Province during the first quarter of 2025 reached Rp 31.1 trillion, with three main contributing sectors: housing, industrial estates and office buildings at Rp 4.8 trillion; basic metals and metal goods industries at Rp 4.1 trillion; and chemical and pharmaceutical industries at Rp 3.7 trillion.
"Every week our colleagues from the regional police chiefs report that conditions have improved considerably," said Todotua, as quoted by Antara on Thursday (19/6).
Todotua affirmed that the government has seriously been eradicating thuggery practices long known for imposing illegal levies, which have the potential to undermine the national investment climate. He noted that security issues, including illegal levies and unlawful permits, are consistently raised as key topics during every government road show with both domestic and foreign investors.
One major case currently being handled involves alleged extortion targeting the Rp 5 trillion Chandra Asri Alkali (CAA) factory construction project, implicating the Cilegon Chamber of Commerce and several mass organisations. Todotua confirmed the case has now entered the legal process stage and the situation on site is relatively conducive.
The government emphasised that reports related to thuggery will be acted upon swiftly. Todotua highlighted that such illegal charges can add 15 to 20 per cent to investment costs, raising concerns that investors may abandon plans to invest in Indonesia.
The CAA project itself is part of the National Strategic Projects under the 2025–2029 National Medium-Term Development Plan (Presidential Regulation No. 12/2025). The development supports petrochemical downstreaming with export potential reaching Rp 35–40 trillion by 2040.
BKPM data showed that investment realisation in Banten Province during the first quarter of 2025 reached Rp 31.1 trillion, with three main contributing sectors: housing, industrial estates and office buildings at Rp 4.8 trillion; basic metals and metal goods industries at Rp 4.1 trillion; and chemical and pharmaceutical industries at Rp 3.7 trillion.