Thuggery in Industrial Areas Prevalent in Indonesia and its Impact on the Investment Climate.

Abstract

Gangsterism is a major obstacle to economic development and domestic investment conditions. This issue not only disrupts public security but also creates legal uncertainty that hinders investment, particularly in industrial areas. Through normative research and an analysis of various laws and regulations along with recent reports, this study reveals that gangsterism, often carried out by community organizations through intimidation, extortion, and factory closures, has resulted in the failure of large-scale investment projects. As a result, industrial operations are disrupted, productivity declines, and business confidence in legal security and stability also diminishes. Although the government, through the Ministry of Industry, has proposed granting certain protective status to strategic industrial zones to ensure their security by law enforcement agencies, addressing gangsterism still requires comprehensive legal reform, consistent law enforcement, and institutional accountability. This study concludes that effectively addressing gangsterism will be a crucial element in fostering a healthy investment environment and driving national economic growth.