Thug Tactics Threaten Indonesia’s EV Industry

Two big EV projects in Indonesia are facing problems because of local community groups known as “ormas”. These groups have been disturbing the work of Vietnam’s VinFast and China’s BYD as they build factories in Subang, West Java.

Deputy Speaker of the People’s Consultative Assembly (MPR), Eddy Soeparno, voiced alarm over the situation through social media, describing the behavior of these groups as bordering on intimidation. He warned that such actions could harm the broader investment climate and urged the government to take firm measures.

BYD, a relatively new player in Indonesia's EV market, is building a major factory in Subang's Smartpolitan industrial zone. The facility spans 126 hectares and is planned to produce up to 150,000 electric vehicles each year.

However, its construction has been disrupted by the actions of local groups seeking to exert influence over the project.

Meanwhile, VinFast is facing similar troubles. The company is investing around $200 million (RM850 million) in a new factory also located in Subang, which will cover 170 hectares. The plant, aimed at assembling the VF3 EV model, is expected to be operational by late 2025. But construction progress has reportedly been interrupted by these same groups.

Moeldoko, who heads the Indonesian Electric Vehicle Industry Association (PERIKLINDO), confirmed the disruptions and expressed concern over their potential impact on investor confidence. The Investment Ministry has stepped in and is now working closely with BYD to get a clearer picture of the situation.

Nurul Ichwan, a deputy at the ministry, stressed that the reported intimidation and extortion are not just problematic - they risk damaging Indonesia’s international image. He added that if the reports prove accurate, the government will dispatch a task force to resolve the issue swiftly.

Indonesia has made big moves to position itself as a hub for green manufacturing, particularly in the EV sector. Officials have been actively courting foreign investment to support this goal. However, recurring issues with “ormas” threaten to derail that progress.

Local industry figures point out that these disturbances have already led to massive losses. According to the Indonesian Industrial Estate Association, interference from such groups has cost the country hundreds of trillions of rupiah in lost investment opportunities.

Their tactics reportedly include blocking access to project sites and demanding control over logistical services.

Authorities are under pressure to act quickly. The fear is that if the situation continues, foreign investors may walk away, leaving behind stalled projects and lost promised job opportunities for thousands of Indonesians.

Source: Jakartaglobe