Crackdown on Gang-Linked Civil Groups Intensifies as Officials Warn of Investment Risks
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JAKARTA, investortrust.id – Senior officials have stepped up warnings over the threat of gang-style extortion by groups posing as civil organizations, calling it a serious risk to public order and the national investment climate.
Air Vice Marshal Eko Dono Indarto, Deputy for Communication and Information at the Coordinating Ministry for Political, Legal, and Security Affairs, said on Monday, May 12, 2025, that the government is prioritizing efforts to dismantle these networks, particularly in industrial and port areas.
“Many of these individuals infiltrate community organizations to demand protection money. This must be addressed,” said Eko during a field visit to the Tanjung Perak Port Police and the East Java Office for National Unity and Politics.
Eko emphasized that both prevention and enforcement are needed. While police continue receiving complaints, their investigations are often hampered by a lack of witnesses and evolving, intimidation-based tactics. “We need stronger field intelligence and better protection for witnesses to ensure legal certainty,” he said.
The crackdown includes mapping community organizations (ormas) that pose a threat to local stability and coordinating regularly with law enforcement and civic leaders to prevent conflicts. The ministry is also pushing for rehabilitation programs to help former offenders transition out of criminal activity.
“This is in line with the direction of the Coordinating Minister for Political, Legal, and Security Affairs Budi Gunawan—so these individuals can be redirected and empowered productively,” Eko said.
In the background of this operation, President Prabowo Subianto has also voiced concern over the rise of vigilante behavior cloaked as civic engagement. State Secretary Prasetyo Hadi confirmed last week that the president had been in consultations with Attorney General ST Burhanuddin and Police Chief General Listyo Sigit Prabowo to pursue both preventive guidance and prosecution where necessary.
“No organization should be allowed to operate like street thugs, especially under the banner of civil society. Such behavior disrupts the business climate,” said Prasetyo.
Extortion Drives Up Investment Costs, Say Experts
Nailul Huda, economist at the Center of Economic and Law Studies (Celios), warned that unchecked extortion, whether by gangs or corrupt officials, increases the cost of doing business in Indonesia.
“These illegal levies represent unnecessary costs that deter investors. They act as unofficial licensing fees,” Huda told Investortrust.id on Monday. He added that these practices contribute to Indonesia’s high Incremental Capital Output Ratio (ICOR), meaning more capital is required to produce economic output compared to regional peers.
“The economy becomes inefficient. Investors turn away when extortion is allowed to persist,” he said. Huda also warned that new anti-extortion task forces must be grounded in real needs and not become symbolic. “The risk is they become the very thing they’re meant to stop—new forms of extortion under official labels.”
Criminologist: Don’t Treat 'Premanism' as Ordinary Street Crime
Adrianus Meliala, a criminologist at the University of Indonesia, argued that gang-linked extortion should be recognized as structured racketeering, not just street-level crime. “Whether it’s demanding holiday bonuses, local employment quotas, or contributions to organizations—it’s all just extortion under different names,” he said.
He criticized enforcement efforts that treat premanism as a minor public nuisance. Premanism is an Indonesian term that refers to organized or semi-organized criminal behavior characterized by intimidation, extortion, and coercion, often perpetrated by individuals or groups acting as unofficial "enforcers" or street thugs (preman).
While the term originates from the Dutch word vrijman (free man), in Indonesia it has come to describe a phenomenon where individuals—sometimes affiliated with community organizations (ormas) or labor groups—impose "fees," enforce local "rules," or offer "security" services through threats and violence.
“These operations are no different from anti-theft crackdowns if they only target behavior that fits narrow legal definitions,” Adrianus said.
Adrianus also pointed to a lack of oversight by the Ministry of Home Affairs, which regulates community organizations. “The problem is everyone reacts after public unrest. But no one holds the ministry accountable before that point,” he said.
Business Leaders Demand Protection
Chairperson of the Indonesian Employers Association (Apindo) Shinta Widjaja Kamdani stressed that extortion in labor-intensive sectors like manufacturing has tangible costs. “Any disruption in factories or projects can lead to cancelled investments—and with that, thousands of jobs vanish,” she said.
According to 2024 labor data, the manufacturing sector employs over 20 million people, making it the country’s third-largest employer. Shinta called for stronger legal protections, coordination with security forces, and clear policy support.
“This isn’t just a business problem. It’s an issue of law, public order, and social stability,” she said. “The government must ensure companies can operate safely, without outside interference.”