FridayOL

Jakarta, Indonesia – In a move lauded by many stakeholders, Presidential Regulation aimed at curbing extortion and illegal activities by organizations (ormas) operating within industrial zones has received strong support from Commission III of the Indonesian Parliament (DPR), responsible for legal affairs.

The backing comes from Wakil Ketua (Deputy Chairman) of Commission III, Ahmad Sahroni, who publicly voiced his support for President Prabowo Subianto's firm stance against these groups. These ormas have been accused of engaging in pungli – a colloquial term for extortion – within industrial areas, disrupting business operations and creating an unfavorable investment climate.

“We fully support the President's policy to take decisive action against ormas that engage in extortion in industrial zones. This is crucial for maintaining order, protecting businesses, and attracting investment,” stated Sahroni. He emphasized that such activities undermine the government's efforts to promote economic growth and create a stable environment for both domestic and foreign investors.

The Problem of Pungli in Industrial Zones

Industrial zones are vital engines of Indonesia's economy, attracting significant foreign investment and providing employment opportunities for millions. However, the presence of extortionist groups has long been a persistent problem. These ormas often demand payments from businesses under various pretenses, ranging from security fees to permits, creating a climate of fear and uncertainty.

This pungli not only burdens businesses financially but also discourages new investment and hinders the expansion of existing operations. The unregulated nature of some ormas and their often-opaque operations make it difficult for authorities to effectively address the issue.

Prabowo's Strategy and Commission III's Role

President Prabowo’s strategy involves a multi-pronged approach, including stricter enforcement of existing laws, increased monitoring of ormas activities, and collaboration with local authorities to address the root causes of extortion. Sahroni highlighted Commission III's commitment to supporting this strategy through legislative oversight and by ensuring that relevant laws are effectively implemented.

“Commission III will work closely with the government to strengthen regulations and improve enforcement mechanisms to prevent and punish those involved in extortion activities,” he added. The Commission is also exploring potential amendments to existing laws to specifically address the issue of pungli within industrial zones.

Impact and Future Outlook

The crackdown on extortionist groups is expected to have a significant positive impact on Indonesia's business climate. By creating a safer and more predictable environment, it will encourage investment, boost economic growth, and improve the overall competitiveness of Indonesian industries.

The support from Commission III signals a strong commitment from the government to address this long-standing problem and create a more equitable and sustainable economic future for Indonesia. The success of this initiative will depend on effective coordination between government agencies, law enforcement, and local communities, as well as a continued commitment to transparency and accountability.

Industry leaders have welcomed the news, expressing hope that the crackdown will lead to a more stable and secure operating environment. They emphasized the importance of collaboration between the government and the private sector to ensure the long-term success of this initiative.