Upcoming Industrial Zone Bill Prepares Criminal Penalties for Thuggery: House

RRI.CO.ID, Tigaraksa – A member of Indonesia's House of Representatives (DPR), Muhammad Hatta, highlighted the threat of thuggery against businesses in Indonesia during discussions on the Industrial Zone Bill. According to him, this practice disturbs not only companies, but also potentially drives investors away from Indonesia.

Hatta said the thuggery issue emerged after several companies reportedly left Indonesia because they could not cope with the disruption. He believes this situation requires serious attention when drafting industrial estate regulations.

"This thuggery has been a very prominent problem for some time. Several companies have even left Indonesia because they couldn't cope with it. I think this is a dangerous issue and we must be vigilant," Hatta said after attending a visit to the Cikupa Mas Industrial Zone in Tangerang Regency, Banten on Wednesday, August 26, 2026.

Hatta assessed that the absence of a law specifically regulating industrial areas means the legal basis for the protection and management of these areas is still scattered across various regulations, including Government Regulations and Ministerial Regulations.

Therefore, Hatta believes the Industrial Zone Bill must have a strong legal basis, including providing certainty and protection for investors from disruptions that could hamper business activities.

"When we create a law, there must be a strong legal basis. So, if undesirable incidents from thuggery and irresponsible mass organizations occur again, we can take firm action," he stressed, as quoted from dpr.co.id.

According to him, investment in Indonesia has a broad economic impact. Investors invest large sums of capital in the hope of operating production facilities, creating jobs, stimulating regional economies, and increasing state revenue through taxes.

Therefore, he believes no party should feel they own a territory and then use that position to disrupt industrial activity. Such practices are considered to create discomfort and damage the investment climate.

"There should no longer be any irresponsible parties who feel they own territory, and so on, which gives the impression of thuggery. I think that's what we must be truly wary of," the legislator conveyed.

Hatta added that Indonesia needs to learn from countries deemed capable of providing legal certainty and security for investors. He argued that if industrial disruptions are not addressed seriously, investors may choose other countries perceived as offering a safer business environment.

In drafting the bill, Hatta hopes the thuggery issue will be given stricter regulation. He even opened up the possibility of criminal sanctions for actions that disrupt and hinder industrial activities.

"If possible, with this Industrial Zone Bill, we will criminalize this thuggery. It's a disturbing activity and could hinder investment. We're working hard to find investors. Investors have already arrived, they've already invested, and yet they're still harassed, so it's a crime. We will automatically determine a sentence of approximately several years for them," Hatta said.