Chandra Asri Pacific Confirms Alleged Extortion Against Chemical Plant Construction Project in Cilegon
PT Chandra Asri Pacific Tbk (TPIA) has addressed reports of alleged extortion targeting its chemical plant construction project by local businessmen in Cilegon, Banten.
The statement was made in response to a letter from the Indonesia Stock Exchange (IDX) No. S-04596/BEI.PP1/05-2025 dated 14 May 2025, requesting clarification regarding media coverage of the incident.
TPIA General Manager of Legal and Corporate Secretary Erri Dewi Riani confirmed that the incident had indeed occurred. The company explained that China Chengda Engineering Co., Ltd. (Chengda), the contractor for the construction of PT Chandra Asri Alkali's (PT CAA) plant in Cilegon, was approached by a group claiming to represent local businessmen. These individuals demanded project work related to the PT CAA project without going through a tender process. The group allegedly demanded a project allocation worth Rp 5 trillion.
TPIA stated that such actions could potentially disrupt the plant's construction schedule and affect the established project execution standards. Furthermore, the demand for project work without a tender process was deemed potentially damaging to the principles of good corporate governance upheld by the company.
"The company has coordinated with Chengda to immediately arrange clarification on this matter so that it can be promptly followed up," said Erri in an information disclosure on Thursday (15 May).
TPIA also attended the Investment Problem Resolution Facilitation Meeting for PT CAA, facilitated by the Investment Coordinating Board (BKPM) on 14 May 2025. The meeting was attended by the Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM, the Banten Provincial Police Chief, the Governor of Banten, the Cilegon Police Chief, the Mayor of Cilegon, the Indonesian Chamber of Commerce and Industry (Kadin) at national, Banten, and Cilegon levels.
Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu stated that the government is committed to ensuring the smooth progress of CAA's investment as one of the key pillars in the national industrial downstream effort.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," he said in a statement on Thursday (15 May).
Todotua said that the situation currently unfolding in Banten must be a concern for all parties and needs to be properly anticipated. The Ministry of Investment and Downstream Industries/BKPM, as Chair of the Investment Acceleration Task Force, together with government officials and relevant authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
He expressed regret over the incident in Cilegon, noting that the matter would be handed over to law enforcement. The Banten Provincial Police will conduct an investigation and determine the appropriate course of action.
"Going forward, we want to establish a deterrent effect against improper actions to safeguard the investment climate in our country," Todotua emphasised.
The statement was made in response to a letter from the Indonesia Stock Exchange (IDX) No. S-04596/BEI.PP1/05-2025 dated 14 May 2025, requesting clarification regarding media coverage of the incident.
TPIA General Manager of Legal and Corporate Secretary Erri Dewi Riani confirmed that the incident had indeed occurred. The company explained that China Chengda Engineering Co., Ltd. (Chengda), the contractor for the construction of PT Chandra Asri Alkali's (PT CAA) plant in Cilegon, was approached by a group claiming to represent local businessmen. These individuals demanded project work related to the PT CAA project without going through a tender process. The group allegedly demanded a project allocation worth Rp 5 trillion.
TPIA stated that such actions could potentially disrupt the plant's construction schedule and affect the established project execution standards. Furthermore, the demand for project work without a tender process was deemed potentially damaging to the principles of good corporate governance upheld by the company.
"The company has coordinated with Chengda to immediately arrange clarification on this matter so that it can be promptly followed up," said Erri in an information disclosure on Thursday (15 May).
TPIA also attended the Investment Problem Resolution Facilitation Meeting for PT CAA, facilitated by the Investment Coordinating Board (BKPM) on 14 May 2025. The meeting was attended by the Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM, the Banten Provincial Police Chief, the Governor of Banten, the Cilegon Police Chief, the Mayor of Cilegon, the Indonesian Chamber of Commerce and Industry (Kadin) at national, Banten, and Cilegon levels.
Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu stated that the government is committed to ensuring the smooth progress of CAA's investment as one of the key pillars in the national industrial downstream effort.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," he said in a statement on Thursday (15 May).
Todotua said that the situation currently unfolding in Banten must be a concern for all parties and needs to be properly anticipated. The Ministry of Investment and Downstream Industries/BKPM, as Chair of the Investment Acceleration Task Force, together with government officials and relevant authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
He expressed regret over the incident in Cilegon, noting that the matter would be handed over to law enforcement. The Banten Provincial Police will conduct an investigation and determine the appropriate course of action.
"Going forward, we want to establish a deterrent effect against improper actions to safeguard the investment climate in our country," Todotua emphasised.