Antara, Jakarta – The Indonesian Industrial Estates Association (HKI) has reported potential losses totaling trillions of rupiah, driven by canceled investments and businesses pulling out of industrial zones. These losses are largely attributed to extortion practices by certain civic organizations.
"It's not just about businesses leaving, but also those canceling their investments. The losses could amount to hundreds of trillions of rupiah," said HKI Chairman Sanny Iskandar, speaking after a dialogue on optimizing industrial areas in Jakarta on Thursday.
Sanny explained that these civic groups, known locally as ormas, have caused security disruptions by staging demonstrations and blockades at industrial sites.
"They seek control over factory-related operations, such as transportation, catering, or supplies. They want to take over procurement or expansion plans," he said. "As a result, factories cannot operate, goods cannot enter, raw materials can't come in, and finished products can't be shipped out."
Although these organizations were initially established with good intentions, they often create problems for both small and large businesses. They are frequently involved in land disputes, demand security fees, and pressure companies to provide jobs.
Sanny also revealed that several investors had sent letters directly to President Prabowo Subianto concerning the extortion activities of these organizations.
According to Sanny, the areas most affected by these practices include Bekasi and Karawang in West Java, industrial zones in East Java, and Batam in Riau Islands.
HKI called on the government to provide stronger security assurances, especially given the vital role that many industrial zones play as national assets. Sanny also cited one specific case where a civic group had sealed off a factory within an industrial park.
"If you look at the photos, you can tell – camouflage uniforms and everything. This wasn't the police; this was a civic group. It has reached that extent," he concluded.
In a related development, investigators from the Corruption Eradication Commission (KPK) raided the home of Japto Soerjosoemarno, Chairman of the Pemuda Pancasila (PP) organization, in Jagakarsa, South Jakarta, on Tuesday. PP, known for its distinctive black and orange camouflage uniforms, is one of the most influential ormas in Indonesia. The raid is suspected to be linked to a corruption case involving former Kutai Kartanegara Regent Rita Widyasari.