Alleged Rp5 Trillion Extortion of Chandra Asri Project Prompts Government Intervention
Cilegon — A video circulating on X (Twitter) showed individuals allegedly from the Cilegon Chamber of Commerce and Industry (Kadin) and local community organisations meeting with representatives of Chengda Engineering Co, the contractor for the CA-EDC chemical plant construction project. In the footage, a man in white clothing openly demanded a "share" of the project, requesting up to Rp5 trillion without any tender process. "Without any tender, the portion must be clear — Rp5 trillion for Kadin," said the man claiming to be a Cilegon Kadin member.
The alleged extortion reached the Ministry of Investment and Downstreaming/BKPM. Deputy Minister of Investment and Downstreaming Todotua Pasaribu held a meeting on Wednesday (14 May 2025) with various parties following the incident at the PT Chandra Asri Alkali (PT CAA) project in Cilegon, Banten. The meeting involved the Banten provincial government, Banten regional police, Kadin representatives, and Chandra Asri directors.
Todotua said he received direct orders from President Prabowo Subianto and Minister of Investment and Downstreaming Rosan Roeslani to resolve the matter. "This meeting was initiated by the Ministry of Investment and Downstreaming because we received orders from the President and the Minister to facilitate a response to the incident in the Cilegon area," he said at a press conference.
Todotua stated the government deeply regretted the incident at what is designated a National Strategic Project (PSN), adding that the case would be referred to Banten regional police.
Chandra Asri Group, the owner of the Chlor Alkali-Ethylene Dichloride (CA-EDC) chemical plant project, responded following the meeting with the ministry, the Banten provincial and Cilegon city governments, national and local Kadin chapters, and Banten police.
"We at Chandra Asri express our gratitude for being well facilitated, and Chandra Asri remains committed to investing in Indonesia to ensure the 8 per cent growth target can be achieved," said Edi Rivai, Legal and External Affairs Director of PT Chandra Asri Alkali.
Edi also apologised that the extortion allegations had attracted public attention and caused a commotion, though he noted the matter had been addressed without elaborating on the specifics of the resolution. He expressed hope that such incidents would not recur, so the chemical plant project could proceed according to its tight schedule.
Meanwhile, Banten regional police have begun investigating the alleged Rp5 trillion extortion. Head of Public Relations for Banten Police, Commissioner Didik Hariyanto, said investigators were currently gathering information. "It is still under investigation," he said on Wednesday (14 May 2025). Police have yet to provide further details but indicated they would summon relevant parties.
Banten Governor Andra Soni had previously revealed that individuals acting on behalf of Cilegon Kadin demanded a Rp5 trillion project share from PT Chengda, the main contractor for PT Chandra Asri Petrochemical Tbk. He called on the national Kadin headquarters to investigate the matter and, if proven, to provide guidance to regional chapters. Andra also planned to visit the Ministry of Investment to coordinate with relevant parties.
National Kadin Chairman Anindya Novyan Bakrie said the organisation would recommend institutional sanctions against the individuals if found guilty, including written warnings, stern reprimands, temporary suspension of organisational authority pending ethics proceedings, and recommendations for replacement or revocation of mandates for officials who misused the Kadin name. Bakrie added that Kadin had established a verification and ethics team to receive complaints and questions from the Cilegon community, and that Kadin, together with the government and law enforcement, would conduct a field visit.
The alleged extortion reached the Ministry of Investment and Downstreaming/BKPM. Deputy Minister of Investment and Downstreaming Todotua Pasaribu held a meeting on Wednesday (14 May 2025) with various parties following the incident at the PT Chandra Asri Alkali (PT CAA) project in Cilegon, Banten. The meeting involved the Banten provincial government, Banten regional police, Kadin representatives, and Chandra Asri directors.
Todotua said he received direct orders from President Prabowo Subianto and Minister of Investment and Downstreaming Rosan Roeslani to resolve the matter. "This meeting was initiated by the Ministry of Investment and Downstreaming because we received orders from the President and the Minister to facilitate a response to the incident in the Cilegon area," he said at a press conference.
Todotua stated the government deeply regretted the incident at what is designated a National Strategic Project (PSN), adding that the case would be referred to Banten regional police.
Chandra Asri Group, the owner of the Chlor Alkali-Ethylene Dichloride (CA-EDC) chemical plant project, responded following the meeting with the ministry, the Banten provincial and Cilegon city governments, national and local Kadin chapters, and Banten police.
"We at Chandra Asri express our gratitude for being well facilitated, and Chandra Asri remains committed to investing in Indonesia to ensure the 8 per cent growth target can be achieved," said Edi Rivai, Legal and External Affairs Director of PT Chandra Asri Alkali.
Edi also apologised that the extortion allegations had attracted public attention and caused a commotion, though he noted the matter had been addressed without elaborating on the specifics of the resolution. He expressed hope that such incidents would not recur, so the chemical plant project could proceed according to its tight schedule.
Meanwhile, Banten regional police have begun investigating the alleged Rp5 trillion extortion. Head of Public Relations for Banten Police, Commissioner Didik Hariyanto, said investigators were currently gathering information. "It is still under investigation," he said on Wednesday (14 May 2025). Police have yet to provide further details but indicated they would summon relevant parties.
Banten Governor Andra Soni had previously revealed that individuals acting on behalf of Cilegon Kadin demanded a Rp5 trillion project share from PT Chengda, the main contractor for PT Chandra Asri Petrochemical Tbk. He called on the national Kadin headquarters to investigate the matter and, if proven, to provide guidance to regional chapters. Andra also planned to visit the Ministry of Investment to coordinate with relevant parties.
National Kadin Chairman Anindya Novyan Bakrie said the organisation would recommend institutional sanctions against the individuals if found guilty, including written warnings, stern reprimands, temporary suspension of organisational authority pending ethics proceedings, and recommendations for replacement or revocation of mandates for officials who misused the Kadin name. Bakrie added that Kadin had established a verification and ethics team to receive complaints and questions from the Cilegon community, and that Kadin, together with the government and law enforcement, would conduct a field visit.