BKPM Refers Cilegon Chamber of Commerce Project Demand Case to Law Enforcement
BANTEN — The controversy surrounding the Cilegon Chamber of Commerce and Industry (Kadin Cilegon) and several mass organisations demanding project allocations from Chengda Engineering Co, the main contractor for the Chandra Asri Alkali (CAA) construction project, has drawn attention from many parties, including the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM).
BKPM has stated it will follow up on the incident in which Kadin Cilegon allegedly demanded Rp5 trillion in project allocations without tender by referring the case to law enforcement to create a deterrent effect.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said his office regretted the incident in Cilegon and would hand the matter over to law enforcement authorities for further processing.
"The essence going forward is to create a deterrent effect," he said, referring to the case of Kadin Cilegon demanding Rp5 trillion in projects without tender, on Thursday (15/5/2025).
BKPM also stated it would establish a business partnership mechanism between local entrepreneurs and investors to maintain a conducive investment climate in the country following the incident.
He also addressed the intimidating actions carried out by individuals claiming to represent Kadin Cilegon against the management of PT Chengda, the main contractor for PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
Todotua explained that under this business partnership mechanism, regional governments through the One-Stop Investment and Integrated Services Office (DPMPTSP) could conduct licensing selection. Meanwhile, investors would provide a list of work that could be carried out by vetted local businesses.
"The regional government will conduct the selection there, and the investors will also provide a list of work that can be contributed to regional business operators," he explained.
He said the business partnership would be managed through the Online Single Submission (OSS) system, with the aim of making investment project management in the regions transparent whilst mitigating activities outside the proper channels.
According to him, the intimidation case carried out by individuals claiming to represent Kadin Cilegon has become a turning point for his office to comprehensively follow up on such disturbing activities.
Todotua also noted that the government is currently focused on boosting economic growth above 8 per cent, with one of the key strategies being to drive investment growth.
Regarding the allegations that Kadin Cilegon demanded project allocations from the Chandra Asri Alkali construction project, Kadin Indonesia confirmed it had established a verification and ethics team.
Kadin Indonesia responded to the Cilegon issue swiftly and prudently to maintain a conducive investment climate and guarantee legal certainty for business operators.
"This is fitting — essentially, we at Kadin are forming and have already begun a verification and ethics team to examine the complaints and questions from the public in Cilegon," said Kadin Indonesia Chairman Anindya Bakrie on Tuesday, 13 May 2025.
Anindya commented on the matter when asked to confirm reports that Kadin Cilegon, Banten, had allegedly demanded allocations from businesses in the area.
Anindya stressed that he had formed a verification and ethics team to respond to various questions and complaints from the public regarding the organisational dynamics of Kadin Cilegon.
According to him, Kadin continues to focus on promoting national trade and investment by upholding legal certainty and rejecting all forms of unlawful actions and repressive approaches.
Kadin Indonesia also took swift action by holding a meeting with representatives of the Banten Governor, BKPM, and law enforcement authorities to investigate the issues that had emerged in Cilegon City.
He assessed that the incident was more the work of rogue individuals at the regency/city level, and its resolution would be carried out through coordination between regional, provincial, and national Kadin organisations.
BKPM has stated it will follow up on the incident in which Kadin Cilegon allegedly demanded Rp5 trillion in project allocations without tender by referring the case to law enforcement to create a deterrent effect.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said his office regretted the incident in Cilegon and would hand the matter over to law enforcement authorities for further processing.
"The essence going forward is to create a deterrent effect," he said, referring to the case of Kadin Cilegon demanding Rp5 trillion in projects without tender, on Thursday (15/5/2025).
BKPM also stated it would establish a business partnership mechanism between local entrepreneurs and investors to maintain a conducive investment climate in the country following the incident.
He also addressed the intimidating actions carried out by individuals claiming to represent Kadin Cilegon against the management of PT Chengda, the main contractor for PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
Todotua explained that under this business partnership mechanism, regional governments through the One-Stop Investment and Integrated Services Office (DPMPTSP) could conduct licensing selection. Meanwhile, investors would provide a list of work that could be carried out by vetted local businesses.
"The regional government will conduct the selection there, and the investors will also provide a list of work that can be contributed to regional business operators," he explained.
He said the business partnership would be managed through the Online Single Submission (OSS) system, with the aim of making investment project management in the regions transparent whilst mitigating activities outside the proper channels.
According to him, the intimidation case carried out by individuals claiming to represent Kadin Cilegon has become a turning point for his office to comprehensively follow up on such disturbing activities.
Todotua also noted that the government is currently focused on boosting economic growth above 8 per cent, with one of the key strategies being to drive investment growth.
Regarding the allegations that Kadin Cilegon demanded project allocations from the Chandra Asri Alkali construction project, Kadin Indonesia confirmed it had established a verification and ethics team.
Kadin Indonesia responded to the Cilegon issue swiftly and prudently to maintain a conducive investment climate and guarantee legal certainty for business operators.
"This is fitting — essentially, we at Kadin are forming and have already begun a verification and ethics team to examine the complaints and questions from the public in Cilegon," said Kadin Indonesia Chairman Anindya Bakrie on Tuesday, 13 May 2025.
Anindya commented on the matter when asked to confirm reports that Kadin Cilegon, Banten, had allegedly demanded allocations from businesses in the area.
Anindya stressed that he had formed a verification and ethics team to respond to various questions and complaints from the public regarding the organisational dynamics of Kadin Cilegon.
According to him, Kadin continues to focus on promoting national trade and investment by upholding legal certainty and rejecting all forms of unlawful actions and repressive approaches.
Kadin Indonesia also took swift action by holding a meeting with representatives of the Banten Governor, BKPM, and law enforcement authorities to investigate the issues that had emerged in Cilegon City.
He assessed that the incident was more the work of rogue individuals at the regency/city level, and its resolution would be carried out through coordination between regional, provincial, and national Kadin organisations.