Community Organizations Hindering Industrial Investment - What's the Solution?

Investasi Digital - Posted on 16 February 2025 Reading time 5 minutes

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The Presence of Mass Organizations in Industrial Zones Hinders Investment

The activities of mass organizations (ormas) in Indonesia's industrial zones have become a major concern, as they frequently disrupt factory operations and hinder investment. Business owners and investors have raised complaints about these groups demanding a share in business contracts, such as catering, transportation, and industrial waste management. This situation has raised serious concerns among the business community and impacted Indonesia's investment appeal.

 

Negative Impact on Investment Climate

The disruptions caused by ormas in industrial areas have led to significant losses for companies and slowed down new investment inflows. Some investors have even decided to cancel their investment plans or shift their focus to other countries, such as Vietnam, which offers a more business-friendly environment. If this issue persists, Indonesia risks losing substantial investment opportunities.

 

Government Efforts to Address the Issue

In response to this challenge, the government, through the Ministry of Industry, has been working closely with security forces to find a solution. Minister of Industry Agus Gumiwang Kartasasmita emphasized that ongoing coordination with security agencies is being carried out to regulate the activities of ormas and maintain industrial stability in Indonesia.

 

Conclusion

The presence of ormas in industrial zones has posed a significant obstacle to business operations and investment in Indonesia. To create a more conducive investment climate, the government must take firm action to ensure legal certainty and protection for industrial players and investors.


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