JAKARTA - Indonesia is grappling with growing public concern about members of particular mass organizations extorting and imposing illegal levies on businesses, which has impacted the business climate and deterred foreign investment.
An investigation by Indonesia's daily newspaper Kompas in March revealed the rampant and coercive thuggery in the country's provinces of West Java and Banten, where the offenders, suspected of being affiliated with certain mass organizations and particular public officers, exerted pressure on companies and business owners in the regions.
The report found that the offenders used some particular methods, including sending "recommendation" letters or submitting requests for audiences, or holding mass protests surrounding industrial complexes, aiming to disrupt the operation of the companies.
In several cases, chaos around industrial complexes deliberately occurred after companies refused to meet the groups' demands, the report said.
In response, the government launched an anti-extortion task force earlier this month to take firm action against groups disrupting public order, investment, and business activities. The task force comprises personnel from the Indonesian National Police (Polri) and the Indonesian National Armed Forces (TNI), in collaboration with relevant ministries, agencies, and regional administrations.
The initiative followed a high-level coordination meeting involving key national institutions, including Polri, TNI, the State Intelligence Agency, the Ministry of Law, and the National Cyber and Crypto Agency.
"Investor confidence will continue to erode if there is no security stability and legal certainty," said Coordinating Minister for Political and Security Affairs Budi Gunawan in a statement last Friday.
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Under the leadership of President Prabowo Subianto, Indonesia has set an ambitious goal of attracting approximately $800 billion in investment between 2025 and 2029, aiming to achieve an 8 percent annual GDP growth rate.
Meanwhile, illicit practice carried out by these mass groups has cost industry players operating in the country hundreds of trillions of Indonesian rupiahs, according to the Indonesian Industrial Estate Association.
The association also said that some investors ended up fleeing after they were forced to include some mass groups in the construction process or factory activities.
Gunawan warned that any action that threatens public order and the sense of security of the community will be handled in a measured manner in accordance with applicable laws and regulations.
Likewise, Minister of Home Affairs Tito Karnavian has stressed that those mass groups involved in such a practice will be given sanctions or have their legal status revoked. Grant funds from the government to those organizations will also be discontinued, he added.
On Thursday, the National Police said that it had handled around 3,300 cases related to thuggery since the establishment of the task force.
Gunawan, who previously served as Indonesia's intelligence chief, encouraged the public to actively participate in fostering a safe and orderly society by reporting any extortion they encounter.
"The government wants the public to feel safe, businesses to feel protected, and Indonesia to be a comfortable place for investment and economic growth," he said.
