Indonesia's Electrification Transition Threatened by Persisting Gangster Issues
Indonesia's Modernization: A Struggle With Criminal Gangs
The current state of Indonesia's modernization is under a spotlight, particularly in its electric vehicle sector, as organized crime groups, known as preman, surface as a formidable obstacle. These gangs, with their roots tracing back to the Dutch colonial era, have carved out a significant role in the economic and political fabric of the country.
The preman, operating under the protection of powerful backers such as political elites and law enforcement, have historically thrived in the shadows. Today, they are being accused of interfering with critical industrial projects, including the $1 billion BYD factory.
The controversy surrounding BYD came to light on April 20, when Eddy Soeparno, deputy speaker of Indonesia's People's Consultative Assembly, raised concerns after visiting BYD's assembly plant in Shenzhen, China. The specifics of the disruptions remain hazy, but the incident serves as a stark reminder of the systemic risks organized crime poses to foreign investments and industrialization drives.
Indonesia's ongoing battle to reconcile modernization with persisting informal power structures is exemplified by the preman's thriving presence. These gangs benefit from their political connections, making it challenging to dismantle their influence. This complicated dynamic risks deterring foreign investors and prolonging Indonesia's dream of becoming Southeast Asia's electric vehicle leader.
As of now, the government has remained quiet on the issue of countermeasures, but the BYD incident signifies a growing acknowledgment of the problem at the highest levels. The state's inaction could spell trouble for the nation's modernization efforts and its standing as a regional powerhouse.
- The preman, with historical links to Indonesia's political elites and law enforcement, are being accused of interfering with modernization projects, such as the electric vehicle sector's $1 billion BYD factory.
- The modernization struggle in Indonesia, as depicted in the general-news and crime-and-justice sectors, is largely centered around the challenge of dealing with these organized crime groups known as preman.
- Eddy Soeparno, a prominent political figure in Indonesia, has raised concerns over the disruptions at BYD's assembly plant in Shenzhen, China, highlighting the systemic risks posed by preman to foreign investments and industrialization drives.
- The government's silence on countermeasures against preman could potentially hamper Indonesia's modernization efforts and its broader aspirations of becoming a leading powerhouse in Southeast Asia.
