Jakarta. Ahead of the Eid al-Fitr holiday, several civic organizations, commonly known as ormas, often cause unrest among business owners by demanding holiday allowances.

The pressure doesn’t come from ormas alone—local governments and even criminal gangs also exert influence during this period.

Sahat Sinaga, Executive Director of the Indonesian Palm Oil Industry Association (GIMNI), said these organizations approach entrepreneurs under the guise of tradition or solidarity, requesting holiday allowances.

"This practice creates anxiety, especially when intimidation and coercion are involved," he said during a Beritasatu TV dialogue titled Ormas Demand THR from Entrepreneurs on Tuesday.

Sahat emphasized that the law should prevent unauthorized individuals from entering company premises.

"In the past, Article 331 of the Criminal Code was displayed on company fences to deter trespassing, but it’s rarely seen now. We question whether it’s still valid. This rule should be reinstated to protect businesses from unauthorized entry by ormas or anyone else. Companies that refuse entry should receive legal protection," he said.

Due to mounting pressure, 43 GIMNI member companies across Indonesia face similar issues. GIMNI urges businesses to document cases of intimidation for legal action.

"We ask companies to keep records so we can file official reports. This ensures complaints are backed by evidence, not speculation," Sinaga added.

For years, businesses across Indonesia have faced intimidation and extortion from criminal groups posing as community organizations. Despite repeated complaints, authorities have failed to take decisive action, allowing these groups to operate with impunity due to weak law enforcement and alleged protection from corrupt officials.

Sinaga said cooking oil factories are frequent targets for extortion under the pretext of community contributions.

"Over time, businesses started treating these payments as a normal cost, similar to corporate social responsibility (CSR)," he said.

These groups also demand payments for various activities, such as funding anniversary celebrations. Many businesses comply rather than risk disruptions.

The Indonesian Industrial Estate Association (HKI) estimates that instability caused by these groups has cost Indonesia hundreds of trillions of rupiah in lost investment. They frequently disrupt industrial operations by staging protests, blocking access, and attempting to control key business activities like transportation, catering, and procurement.

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