Chandra Asri Chemical Plant Project Hit by Alleged Extortion Demands from Local Organisations
CILEGON — The construction project for a chlor alkali-ethylene dichloride (CA-EDC) chemical plant to be built by PT Chandra Asri Petrochemical Tbk (TPIA) has come under the spotlight following allegations that local community organisations (ormas) and business figures demanded a 'cut' of the project.
This was revealed through various videos circulating on Instagram, X and TikTok, showing a number of parties — allegedly including the Cilegon Chamber of Commerce and Industry (Kadin) and local community organisations — demanding a share of the total investment allocated for the plant's construction.
In one video posted on the TikTok account Fakta Banten on Sunday (11 May 2025), the parties were shown meeting with representatives of Chengda Engineering Co, the contractor for the CA-EDC plant construction project. The video showed several individuals wearing white and black uniforms bearing the Kadin logo participating in the meeting. In addition to Kadin, other associations and organisations reportedly present included HIPPI, Hipmi, Gapensi, HNSI, and others.
Midway through the video, a person claiming to represent Kadin Cilegon raised his voice, making clear the purpose of the meeting — to demand a 'portion' of the plant construction project. "Without any tender, the portion must be clear — without any tender, Rp5 trillion for Kadin, Rp3 trillion for Kadin, without any tender," said the man claiming to represent Kadin Cilegon.
Reports of the alleged demands for an investment 'cut' from local organisations and Kadin have been formally filed with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM). Deputy for Investment Implementation Control at BKPM, Eddy Junaedi, confirmed that his office had received a report from the company concerned, namely Chandra Asri. He said he would summon the organisations and other parties involved.
"The company has reported the incident. We will invite Forkompinda, company representatives, and both central and regional Kadin to discuss the issue," Eddy said on Tuesday (13 May 2025).
Eddy assured that BKPM would strengthen the enforcement of investment regulations going forward and deploy the Anti-Thuggery Task Force (Satgas Premanisme) to prevent obstacles to investment realisation in Indonesia.
Meanwhile, Deputy Coordinating Chairman for Investment, Downstreaming and Environment at the Indonesian Chamber of Commerce and Industry (Kadin), Bobby Gafur Umar, was asked for comment on the matter. However, no response had been received by the time of publication.
This was revealed through various videos circulating on Instagram, X and TikTok, showing a number of parties — allegedly including the Cilegon Chamber of Commerce and Industry (Kadin) and local community organisations — demanding a share of the total investment allocated for the plant's construction.
In one video posted on the TikTok account Fakta Banten on Sunday (11 May 2025), the parties were shown meeting with representatives of Chengda Engineering Co, the contractor for the CA-EDC plant construction project. The video showed several individuals wearing white and black uniforms bearing the Kadin logo participating in the meeting. In addition to Kadin, other associations and organisations reportedly present included HIPPI, Hipmi, Gapensi, HNSI, and others.
Midway through the video, a person claiming to represent Kadin Cilegon raised his voice, making clear the purpose of the meeting — to demand a 'portion' of the plant construction project. "Without any tender, the portion must be clear — without any tender, Rp5 trillion for Kadin, Rp3 trillion for Kadin, without any tender," said the man claiming to represent Kadin Cilegon.
Reports of the alleged demands for an investment 'cut' from local organisations and Kadin have been formally filed with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM). Deputy for Investment Implementation Control at BKPM, Eddy Junaedi, confirmed that his office had received a report from the company concerned, namely Chandra Asri. He said he would summon the organisations and other parties involved.
"The company has reported the incident. We will invite Forkompinda, company representatives, and both central and regional Kadin to discuss the issue," Eddy said on Tuesday (13 May 2025).
Eddy assured that BKPM would strengthen the enforcement of investment regulations going forward and deploy the Anti-Thuggery Task Force (Satgas Premanisme) to prevent obstacles to investment realisation in Indonesia.
Meanwhile, Deputy Coordinating Chairman for Investment, Downstreaming and Environment at the Indonesian Chamber of Commerce and Industry (Kadin), Bobby Gafur Umar, was asked for comment on the matter. However, no response had been received by the time of publication.