JAKARTA \u2014 The construction of a chlor alkali-ethylene dichloride\n(CA-EDC) chemical plant by PT Chandra Asri Pacific Tbk (TPIA) has come\nunder the spotlight following alleged demands for project \u201callocations\u201d\nfrom civil society organisations (ormas) and local business figures.<\/p>\n
Various videos circulating on Instagram, X and TikTok appear to show\nseveral parties, believed to include the Cilegon chapter of the\nIndonesian Chamber of Commerce and Industry (Kadin) and local ormas,\ndemanding a share of the total investment earmarked for the plant\u2019s\nconstruction.<\/p>\n
In one video uploaded via the TikTok account Fakta Banten on Sunday\n(11 May 2025), the parties were seen meeting with representatives of\nChengda Engineering Co.\u00a0Ltd, the contractor for the CA-EDC plant\nproject. Several individuals wearing white and black uniforms bearing\nthe Kadin emblem were visible and vocal during the meeting.<\/p>\n
Besides Kadin, other associations and organisations reportedly\npresent included HIPPI, Hipmi, Gapensi, HNSI, and others.<\/p>\n
Midway through the video, a person claiming to represent Kadin\nCilegon raised his voice and made clear the purpose of the meeting \u2014 to\ndemand a \u201cportion\u201d of the construction project.<\/p>\n
\u201cWithout any tender, the allocation must be clear \u2014 Rp5 trillion for\nKadin, Rp3 trillion for Kadin, without any tender,\u201d the man stated.<\/p>\n
A Bisnis source familiar with the incident confirmed the events shown\nin the circulating video, though they were unable to provide further\ndetails on the situation.<\/p>\n
Reports of the alleged investment \u201callocation\u201d demands from ormas and\nthe local Kadin chapter have been formally lodged with the Ministry of\nInvestment and Downstreaming\/Investment Coordinating Board (BKPM).<\/p>\n
BKPM Deputy for Investment Implementation Control Eddy Junaedi\nconfirmed that his office had received a report from the company\nconcerned, namely Chandra Asri. He said he would summon the ormas and\nother parties involved.<\/p>\n
\u201cThe company has reported the incident. We will invite Forkompinda,\ncompany representatives, and both national and regional Kadin to discuss\nthe issue,\u201d Eddy told Bisnis on Tuesday (13 May 2025).<\/p>\n
Eddy assured that BKPM would strengthen regulatory enforcement within\nthe investment sphere and deploy the Anti-Thuggery Task Force (Satgas\nPremanisme) to prevent obstacles to investment realisation in\nIndonesia.<\/p>\n
Bisnis also contacted Bobby Gafur Umar, Vice Chairman and Coordinator\nfor Investment, Downstreaming and Environment at Kadin Indonesia, for\nconfirmation, but had received no response by the time of\npublication.<\/p>\n
The CA-EDC chemical plant owned by Chandra Asri has been designated a\nNational Strategic Project (PSN). PT Chandra Asri Pacific Tbk (TPIA)\ndeclared its readiness to build the plant in Cilegon, Banten, following\nits designation as a PSN to support sustainable economic growth in\nIndonesia.<\/p>\n
Chandra Asri Group President Director and CEO Erwin Ciputra\npreviously expressed appreciation for the government\u2019s full support in\ndesignating the CA-EDC plant as a National Strategic Project, stating\nthat the PSN status demonstrated a shared commitment to accelerating\ndevelopment in line with the company\u2019s mission as a growth partner.<\/p>\n
\u201cThrough the construction of this CA-EDC plant, we hope to support\nthe Asta Cita agenda by driving industrial downstreaming and reducing\ndependence on imported chemicals,\u201d Erwin said in an official statement\non Tuesday (4 March 2025).<\/p>\n
The CA-EDC plant was selected as a PSN through Presidential\nRegulation Number 12 of 2025 on the National Medium-Term Development\nPlan (RPJMN) 2025\u20132029, signed on 10 February 2025.<\/p>\n
The project requires an investment of Rp15 trillion and will be\nmanaged by Chandra Asri Group subsidiary PT Chandra Asri Alkali (CAA).\nThe plant will have a production capacity of 400,000 tonnes per year for\nwet caustic soda and 500,000 tonnes per year for ethylene dichloride\n(EDC).<\/p>\n
Caustic soda is widely used in alumina and nickel refining processes,\nparticularly in electric vehicle (EV) battery components, as well as in\nthe pulp and paper and household industries. EDC, meanwhile, is the\nprimary raw material for polyvinyl chloride (PVC), used across various\nconstruction sectors including plastic piping.<\/p>\n
Chandra Asri had previously warned of security threats to plant\noperations from ormas engaging in thuggery and frequently demanding\nallocations. Director of Legal, External Affairs and Circular Economy\nEdi Rivai noted that such risks were not confined to the company\u2019s\nproduction area in Cilegon, Banten, but affected other industrial zones\nas well.<\/p>\n
\u201cRegarding ormas operating in other locations, Kadin itself has\nformed a group concerning industrial zones to address this ormas issue,\u201d\nEdi said, as quoted on Saturday (15 March 2025).<\/p>\n
The company has also urged the government to provide legal certainty\nto ensure that ormas and other communities disrupting production\nactivities are no longer tolerated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/chandra-asris-rp15-trillion-chemical-plant-project-hit-by-alleged-extortion-demands-from-local-organisations-1771239986", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }