Banten Provincial Government Guarantees Investment Continuity Following Chandra Asri Incident
The Banten Provincial Government has guaranteed the continuity of investment activities across the region following an incident at a project site belonging to PT Chandra Asri Alkali.
Banten Governor Andra Soni said his administration held a meeting with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) to resolve the investment issues surrounding PT Chandra Asri Alkali on Wednesday (14/5/2025).
"This meeting reaffirms the support and commitment to investment realisation in Banten Province so that it can proceed well and on schedule, delivering benefits to the province, particularly the city of Cilegon," he said, as quoted from an official Banten Provincial Government statement.
According to Soni, the government has supported investment activities by providing relaxation measures in the form of tax holidays and tax allowances. The implementing regulations for these policies are expected to have a positive impact on the local ecosystem.
"We must ensure Banten Province remains investment-friendly. We are socialising the existing rules of the game," he said.
He noted that Banten Province ranks fifth nationally for investment realisation. This year, the central government has set an investment realisation target of Rp119 trillion for Banten. Achieving this requires cooperation from all parties to create a conducive investment climate.
"God willing, incidents like what happened at Chandra Asri will not occur again in the future," Andra Soni said.
**A Troubling Incident**
Meanwhile, chairing the meeting, Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said the gathering with regional government officials was held as a follow-up to a letter from Chandra Asri regarding a viral incident at the company's project site.
"This incident is quite troubling for our investment climate. On the Minister's orders, I am carrying out an investment consolidation for PT Chandra Asri Alkali," Todotua said.
He explained that the Ministry of Investment and Downstreaming/BKPM has taken over monitoring to ensure investment conditions remain conducive. The PT Chandra Asri Alkali investment is classified as a National Strategic Project (PSN) located in a vital object zone.
According to Todotua, the administration of President Prabowo Subianto has set an economic growth target of 8 per cent. To achieve this, Indonesia requires investment realisation of approximately Rp13,000 trillion.
"This is a major challenge, but on the other hand the potential is quite significant," he said.
He expressed hope that the meeting could serve as a model for resolving friction related to investment activities in other provinces nationwide, not just Banten.
At the same event, Banten Police Chief Inspector General Suyudi Ario Seto stated that the police are part of the Investment Acceleration Task Force. In response to the viral video, Banten Police will deploy a team to conduct an investigation.
"If there are suspected criminal acts, particularly those that disrupt the investment climate in this country, we will certainly carry out investigative and detection efforts. We will process this legally to create a deterrent effect," the Banten Police Chief affirmed.
According to a Bank Indonesia economic report, Banten's investment performance in the fourth quarter of 2024 grew positively at 1.61 per cent year-on-year (YoY), although this growth was slower compared to the third quarter of 2024 at 5.44 per cent YoY.
The slowdown in investment performance was reflected in the decline in foreign direct investment (PMA) and domestic direct investment (PMDN) realisation in Banten. PMA and PMDN realisation was recorded at Rp22.2 trillion in the fourth quarter of 2024, down from the previous year.
The decline in investment performance was also in line with weakening construction sector performance in the fourth quarter of 2024. This was further confirmed by declining regional government capital expenditure realisation in the same period. Banten's regional budget (APBD) capital expenditure contracted by 17 per cent YoY, whilst Banten's national budget (APBN) capital expenditure also contracted by 48.2 per cent YoY.
Banten Governor Andra Soni said his administration held a meeting with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) to resolve the investment issues surrounding PT Chandra Asri Alkali on Wednesday (14/5/2025).
"This meeting reaffirms the support and commitment to investment realisation in Banten Province so that it can proceed well and on schedule, delivering benefits to the province, particularly the city of Cilegon," he said, as quoted from an official Banten Provincial Government statement.
According to Soni, the government has supported investment activities by providing relaxation measures in the form of tax holidays and tax allowances. The implementing regulations for these policies are expected to have a positive impact on the local ecosystem.
"We must ensure Banten Province remains investment-friendly. We are socialising the existing rules of the game," he said.
He noted that Banten Province ranks fifth nationally for investment realisation. This year, the central government has set an investment realisation target of Rp119 trillion for Banten. Achieving this requires cooperation from all parties to create a conducive investment climate.
"God willing, incidents like what happened at Chandra Asri will not occur again in the future," Andra Soni said.
**A Troubling Incident**
Meanwhile, chairing the meeting, Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said the gathering with regional government officials was held as a follow-up to a letter from Chandra Asri regarding a viral incident at the company's project site.
"This incident is quite troubling for our investment climate. On the Minister's orders, I am carrying out an investment consolidation for PT Chandra Asri Alkali," Todotua said.
He explained that the Ministry of Investment and Downstreaming/BKPM has taken over monitoring to ensure investment conditions remain conducive. The PT Chandra Asri Alkali investment is classified as a National Strategic Project (PSN) located in a vital object zone.
According to Todotua, the administration of President Prabowo Subianto has set an economic growth target of 8 per cent. To achieve this, Indonesia requires investment realisation of approximately Rp13,000 trillion.
"This is a major challenge, but on the other hand the potential is quite significant," he said.
He expressed hope that the meeting could serve as a model for resolving friction related to investment activities in other provinces nationwide, not just Banten.
At the same event, Banten Police Chief Inspector General Suyudi Ario Seto stated that the police are part of the Investment Acceleration Task Force. In response to the viral video, Banten Police will deploy a team to conduct an investigation.
"If there are suspected criminal acts, particularly those that disrupt the investment climate in this country, we will certainly carry out investigative and detection efforts. We will process this legally to create a deterrent effect," the Banten Police Chief affirmed.
According to a Bank Indonesia economic report, Banten's investment performance in the fourth quarter of 2024 grew positively at 1.61 per cent year-on-year (YoY), although this growth was slower compared to the third quarter of 2024 at 5.44 per cent YoY.
The slowdown in investment performance was reflected in the decline in foreign direct investment (PMA) and domestic direct investment (PMDN) realisation in Banten. PMA and PMDN realisation was recorded at Rp22.2 trillion in the fourth quarter of 2024, down from the previous year.
The decline in investment performance was also in line with weakening construction sector performance in the fourth quarter of 2024. This was further confirmed by declining regional government capital expenditure realisation in the same period. Banten's regional budget (APBD) capital expenditure contracted by 17 per cent YoY, whilst Banten's national budget (APBN) capital expenditure also contracted by 48.2 per cent YoY.