BKPM to Refer Cilegon Chamber of Commerce Project Demand Case to Law Enforcement as Deterrent
The dispute involving the Cilegon Chamber of Commerce and Industry (Kadin Cilegon) and several civil society organisations demanding project allocations from Chengda Engineering Co, the main contractor for the Chandra Asri Alkali (CAA) construction project, has drawn attention from numerous 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 demanded Rp5 trillion in project allocations without a tender process, by referring the case to law enforcement authorities 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 for further processing. "The essence going forward is to create a deterrent effect," he said, referring to the need to deter such behaviour, as reported by ANTARA on Thursday, 15 May 2025.
BKPM also indicated it would establish a business partnership mechanism between local entrepreneurs and investors to maintain a conducive investment climate in the country following the incident.
Pasaribu addressed the intimidating actions carried out by individuals acting on behalf of Kadin Cilegon against the management of PT Chengda, the main contractor for PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
He explained that under this business partnership mechanism, regional governments through the One-Stop Investment and Integrated Services Office (DPMPTSP) could conduct permit selection processes. Meanwhile, investors would provide a list of work packages that could be undertaken by vetted local entrepreneurs.
"The regional government will carry out the selection process, and investors will also provide a list of work that can be contributed to local 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 proper channels.
According to Pasaribu, the intimidation case involving individuals acting on behalf of Kadin Cilegon marked a turning point for his office to comprehensively address such concerning activities. He also noted that the government is currently focused on boosting economic growth above 8 per cent, with one key strategy being to drive investment growth.
**Kadin Indonesia Forms Verification Team**
Regarding the allegations against Kadin Cilegon, the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) confirmed it had formed a verification and ethics team. Kadin Indonesia Chairman Anindya Bakrie said the organisation was responding to the Cilegon issue swiftly and prudently to maintain a conducive investment climate and ensure legal certainty for business operators.
"We at Kadin are forming, and have already started, a verification and ethics team to examine the complaints and questions from the public in Cilegon," Bakrie said, as reported by ANTARA on Tuesday, 13 May 2025.
Bakrie stressed that Kadin continues to focus on promoting national trade and investment whilst upholding legal certainty and rejecting all forms of unlawful and repressive actions.
Kadin Indonesia took swift action by convening a meeting with representatives of the Banten Governor, BKPM, and law enforcement authorities to investigate the matter in Cilegon. Bakrie assessed the incident as being perpetrated by individuals at the regency/city level, and its resolution would be handled through coordination between the regional, provincial, and national levels of Kadin.
**APINDO Supports Investigation**
The Indonesian Employers' Association (Apindo) also expressed support for the investigation into the Cilegon issue, emphasising the importance of business security.
"Regarding Cilegon, I would just say that we need to understand the facts of the matter. I believe they [Kadin Indonesia] will investigate further whether this was done in the name of the organisation, an individual, or something else," said Apindo Chairwoman Shinta W Kamdani.
Kamdani said she did not wish to focus too much on the allegations of Kadin demanding Chandra Asri Alkali project allocations, but rather highlighted security concerns and the role of civil society organisations. "What we want to underline is more about the security aspect and civil society organisations," she said.
Kamdani noted that the incident involving Kadin Cilegon, captured in a viral video, represented a disturbance to the business climate. "This is a very important concern because it also disrupts a healthy business climate," she said.
Apindo supports further investigation into the Cilegon incident. "This is perhaps our concern, but the Cilegon incident needs to be investigated further to establish the facts," she concluded.
BKPM has stated it will follow up on the incident in which Kadin Cilegon demanded Rp5 trillion in project allocations without a tender process, by referring the case to law enforcement authorities 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 for further processing. "The essence going forward is to create a deterrent effect," he said, referring to the need to deter such behaviour, as reported by ANTARA on Thursday, 15 May 2025.
BKPM also indicated it would establish a business partnership mechanism between local entrepreneurs and investors to maintain a conducive investment climate in the country following the incident.
Pasaribu addressed the intimidating actions carried out by individuals acting on behalf of Kadin Cilegon against the management of PT Chengda, the main contractor for PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
He explained that under this business partnership mechanism, regional governments through the One-Stop Investment and Integrated Services Office (DPMPTSP) could conduct permit selection processes. Meanwhile, investors would provide a list of work packages that could be undertaken by vetted local entrepreneurs.
"The regional government will carry out the selection process, and investors will also provide a list of work that can be contributed to local 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 proper channels.
According to Pasaribu, the intimidation case involving individuals acting on behalf of Kadin Cilegon marked a turning point for his office to comprehensively address such concerning activities. He also noted that the government is currently focused on boosting economic growth above 8 per cent, with one key strategy being to drive investment growth.
**Kadin Indonesia Forms Verification Team**
Regarding the allegations against Kadin Cilegon, the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) confirmed it had formed a verification and ethics team. Kadin Indonesia Chairman Anindya Bakrie said the organisation was responding to the Cilegon issue swiftly and prudently to maintain a conducive investment climate and ensure legal certainty for business operators.
"We at Kadin are forming, and have already started, a verification and ethics team to examine the complaints and questions from the public in Cilegon," Bakrie said, as reported by ANTARA on Tuesday, 13 May 2025.
Bakrie stressed that Kadin continues to focus on promoting national trade and investment whilst upholding legal certainty and rejecting all forms of unlawful and repressive actions.
Kadin Indonesia took swift action by convening a meeting with representatives of the Banten Governor, BKPM, and law enforcement authorities to investigate the matter in Cilegon. Bakrie assessed the incident as being perpetrated by individuals at the regency/city level, and its resolution would be handled through coordination between the regional, provincial, and national levels of Kadin.
**APINDO Supports Investigation**
The Indonesian Employers' Association (Apindo) also expressed support for the investigation into the Cilegon issue, emphasising the importance of business security.
"Regarding Cilegon, I would just say that we need to understand the facts of the matter. I believe they [Kadin Indonesia] will investigate further whether this was done in the name of the organisation, an individual, or something else," said Apindo Chairwoman Shinta W Kamdani.
Kamdani said she did not wish to focus too much on the allegations of Kadin demanding Chandra Asri Alkali project allocations, but rather highlighted security concerns and the role of civil society organisations. "What we want to underline is more about the security aspect and civil society organisations," she said.
Kamdani noted that the incident involving Kadin Cilegon, captured in a viral video, represented a disturbance to the business climate. "This is a very important concern because it also disrupts a healthy business climate," she said.
Apindo supports further investigation into the Cilegon incident. "This is perhaps our concern, but the Cilegon incident needs to be investigated further to establish the facts," she concluded.