JAKARTA - Deputy Minister of Investment and Downstream Development/Deputy Head of the Investment Coordinating Board, Todotua Pasaribu, stated that thuggery is one of the main obstacles to investment entering Indonesia.
He said this is because thuggery increases production costs, making it difficult for Indonesia to offer competitive prices compared to peer countries.
"I have data that thuggery creates variable costs of 5-30 percent of production costs. This thuggery is not only caused by community organizations, but also by bureaucratic thuggery and government officials," Todotua said, as reported by ANTARA on Wednesday, August 27.
The government has provided various incentives to attract investors, such as tax holidays, tax allowances, and tax deductions.
However, he emphasized the need for cooperation from various parties to make Indonesia competitive, including by eradicating thuggery.
"If costs like these persist, the impact will be on all of us," he added.
In parallel, the government is also intensively preparing human resources (HR) so that Indonesia can become a player in the global economy.
He assured that the government will continue to strategically manage Indonesia's natural resources for domestic and international consumption, thus impacting economic growth.
He also expressed his hope that the public will place their trust in the government. This was in response to the planned demonstrations scheduled for Thursday (August 28th). He stated that the demonstrations could impact the investment climate.
"So, put your trust in the government," he concluded.
Previously, Minister of Investment and Downstream Development/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, revealed that investment realization in the second quarter of this year reached IDR 477.7 trillion, an 11.5 percent increase from IDR 428.4 trillion in the same period last year.
Foreign direct investment (PMA) contribution in the second quarter of 2025 was IDR 202.2 trillion, while domestic direct investment (PMDN) contribution was IDR 275.5 trillion.
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