APINDO: PT BSA Conflict Highlights the Need to Strengthen Lampung’s Investment Climate
Friday, 14 August 2026
BANDAR LAMPUNG – The Indonesian Employers Association (APINDO) Lampung has expressed serious concern over the burning of an employee dormitory and several facilities belonging to PT Bumi Sentosa Abadi (BSA) in Anak Tuha District, Central Lampung Regency, saying the incident warrants close attention from the business community.
The incident, which occurred on Wednesday (August 12, 2026), could raise concerns among businesses and prospective investors, particularly regarding worker safety, legal certainty, and the protection of corporate assets.
Chairman of DPP APINDO Lampung Ary Meizari Alfian said investment requires legal certainty and a secure and conducive environment. However, he stressed that a single incident should not be taken as a reflection of the overall investment climate in Lampung Province.
“This is certainly a matter of concern for the business community because investment requires legal certainty, worker safety, and protection of corporate assets. Incidents like this can raise concerns among businesses and prospective investors,” Ary said on Friday (August 14, 2026).
Nevertheless, APINDO called for the issue to be viewed beyond the acts of arson and property destruction, noting that the incident was part of a long-running agrarian conflict between local communities and PT BSA.
“The burning and destruction of property cannot be justified. However, we must not look only at the final acts without addressing the underlying issues that have fueled the conflict,” he said.
According to Ary, failure to resolve the root causes could increase the risk of similar conflicts recurring, ultimately harming both local communities and the business sector.
The PT BSA agrarian conflict escalated again after hundreds of residents from three villages went to the company’s office on August 12, 2026. The situation subsequently turned violent and resulted in the burning of several company facilities.
The dispute between the community and the company has reportedly continued for an extended period. The issues involve the control and utilization of land, including differing views regarding the history of land ownership, the status and legality of Cultivation Rights (Hak Guna Usaha/HGU), HGU boundaries, the process of issuing HGU rights, corporate permits, and community claims over land managed by the company.
A similar conflict occurred on September 21, 2023, during the execution of a court-related land process involving approximately 892 hectares in Anak Tuha District, covering areas within Bumi Aji, Negara Aji Tua, and Negara Aji Baru villages.
APINDO called on the government to conduct an open verification and audit of the status and boundaries of the land, as well as the legality of the HGU. It also urged the company and local communities to engage in an objective and fair dialogue.
“The government must also ensure that communication and partnership between the company and surrounding communities function properly. If there are violations of the law, they must be handled professionally and proportionately,” Ary said.
APINDO emphasized that law enforcement against acts of arson and property destruction must continue. However, law enforcement measures should go hand in hand with efforts to address the root causes of the agrarian conflict.
The review, APINDO said, should cover the history of land control, the status and boundaries of the HGU, the legality and permits of the company, compliance with corporate obligations, potential land-use overlaps, as well as evidence and claims presented by each party.
“Companies need certainty and security, communities need justice, and the government must be present as both a mediator and an enforcer of the law,” he stressed.
APINDO said it would promote a number of measures to prevent similar conflicts from recurring in Lampung.
First, APINDO is prepared to serve as a communication bridge between the business community, government, and local communities when conflicts arise that could disrupt business activities.
Second, APINDO will encourage early conflict prevention by identifying agrarian and industrial relations issues that have the potential to escalate into open conflict.
Third, APINDO will promote legal certainty and investment security so that companies operating in compliance with applicable regulations receive adequate protection and security.
Fourth, companies are encouraged to strengthen their relationships with surrounding communities through partnerships, community empowerment, and more open communication.
In addition, APINDO called on the government to establish a dedicated forum or mechanism for resolving business-related conflicts in Lampung, so that disputes do not have to escalate into mass protests or violence before they are addressed.
“APINDO is also ready to be part of the dialogue process if the government requires the involvement of the business community in resolving this matter,” he said.
APINDO reiterated that its support for legal certainty and investment security must go hand in hand with a fair resolution of conflicts that takes into account the interests of local communities.
“Healthy investment is investment that provides certainty for companies while also delivering benefits to the community,” Ary concluded.
Source: kupastuntas.co