Indonesia Takes Aim at Protection Rackets, Which Threaten Investments

Politicians Vow to Tackle Decades-Old Issue That Impedes Growth Target Set by Prabowo

- Wahyudi Soeriaatmadja

JAKARTA - A grainy photo shows a 3m-wide banner hanging at the entrance of a rubber processing factory in Central Kalimantan province in Indonesia. The banner reads: "This plant's operations have been shut down by Grib Jaya Kalteng."

Grib, short for Gerakan Rakyat Indonesia Bersatu, is one of the country's many organisasi kemasyarakatan (ormas) or community groups said to be engaging in extortion and protection rackets, at the expense of business.

On April 26, a video surfaced on social media showing its members putting up the banner.

After the video went viral, police investigated and found that Grib's intimidation tactics were aimed at collecting a supposed debt from the factory, on behalf of the group's client.

This practice of ormas members forcing companies to pay up by threatening harassment, disruption and even violence has been prevalent for decades.

But politicians are now vowing to crack down on it, not least because it impedes commerce and the ambitious 8 per cent annual growth target set by Indonesian President Prabowo Subianto.

West Java Governor Dedi Mulyadi recently pledged to stamp out thugs masquerading as community groups in his province, which houses the highest number of industrial estates in the country. This came after the police arrested Grib members who had set fire to three police cars on April 18 in Cimanggis.

The governor's promise itself was met with threats.