Holiday Ayo - 

Business owners in Indonesia have voiced concerns over rampant illegal levies imposed by certain rogue elements within mass organizations (ormas) and non-governmental organizations (NGOs). The issue remains unresolved, creating unease in the business sector and negatively impacting the country’s investment climate.

These rogue groups often demand financial contributions under the pretext of maintaining security and order. However, their demands go beyond security-related matters. Many ormas pressure businesses to award them contracts for services such as catering, transportation, waste management, and even factory construction projects.

Chairman of the Industrial Estate Association (HKI), Sanny Iskandar, revealed that these extortion practices have caused Indonesia to suffer potential losses amounting to hundreds of trillions of rupiah.

"If we consider not only the direct financial losses but also the investments that have been canceled due to these issues, the total loss could reach hundreds of trillions of rupiah," Sanny stated at the Ministry of Industry office in Jakarta, as quoted on Sunday (March 16, 2024).

He further explained that the actions of these rogue groups often disrupt industrial zones by staging protests and demanding a share of business projects.

"Many of them are not even from the local area. They come from various regions and immediately demand a portion of the projects. This cannot be tolerated. Every corporate project must go through a transparent and professional tender process," he emphasized.