Chandra Asri's Rp15 Trillion Chemical Plant Project Hit by Alleged Extortion Demands from Local Organisations
JAKARTA — The construction of a chlor alkali-ethylene dichloride (CA-EDC) chemical plant by PT Chandra Asri Pacific Tbk (TPIA) has come under the spotlight following alleged demands for project "allocations" from civil society organisations (ormas) and local business figures.
Various videos circulating on Instagram, X and TikTok appear to show several parties, believed to include the Cilegon chapter of the Indonesian Chamber of Commerce and Industry (Kadin) and local ormas, demanding a share of the total investment earmarked for the plant's construction.
In one video uploaded via the TikTok account Fakta Banten on Sunday (11 May 2025), the parties were seen meeting with representatives of Chengda Engineering Co. Ltd, the contractor for the CA-EDC plant project. Several individuals wearing white and black uniforms bearing the Kadin emblem were visible and vocal during the meeting.
Besides 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 and made clear the purpose of the meeting — to demand a "portion" of the construction project.
"Without any tender, the allocation must be clear — Rp5 trillion for Kadin, Rp3 trillion for Kadin, without any tender," the man stated.
A Bisnis source familiar with the incident confirmed the events shown in the circulating video, though they were unable to provide further details on the situation.
Reports of the alleged investment "allocation" demands from ormas and the local Kadin chapter have been formally lodged with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM).
BKPM Deputy for Investment Implementation Control Eddy Junaedi confirmed that his office had received a report from the company concerned, namely Chandra Asri. He said he would summon the ormas and other parties involved.
"The company has reported the incident. We will invite Forkompinda, company representatives, and both national and regional Kadin to discuss the issue," Eddy told Bisnis on Tuesday (13 May 2025).
Eddy assured that BKPM would strengthen regulatory enforcement within the investment sphere and deploy the Anti-Thuggery Task Force (Satgas Premanisme) to prevent obstacles to investment realisation in Indonesia.
Bisnis also contacted Bobby Gafur Umar, Vice Chairman and Coordinator for Investment, Downstreaming and Environment at Kadin Indonesia, for confirmation, but had received no response by the time of publication.
The CA-EDC chemical plant owned by Chandra Asri has been designated a National Strategic Project (PSN). PT Chandra Asri Pacific Tbk (TPIA) declared its readiness to build the plant in Cilegon, Banten, following its designation as a PSN to support sustainable economic growth in Indonesia.
Chandra Asri Group President Director and CEO Erwin Ciputra previously expressed appreciation for the government's full support in designating the CA-EDC plant as a National Strategic Project, stating that the PSN status demonstrated a shared commitment to accelerating development in line with the company's mission as a growth partner.
"Through the construction of this CA-EDC plant, we hope to support the Asta Cita agenda by driving industrial downstreaming and reducing dependence on imported chemicals," Erwin said in an official statement on Tuesday (4 March 2025).
The CA-EDC plant was selected as a PSN through Presidential Regulation Number 12 of 2025 on the National Medium-Term Development Plan (RPJMN) 2025–2029, signed on 10 February 2025.
The project requires an investment of Rp15 trillion and will be managed by Chandra Asri Group subsidiary PT Chandra Asri Alkali (CAA). The plant will have a production capacity of 400,000 tonnes per year for wet caustic soda and 500,000 tonnes per year for ethylene dichloride (EDC).
Caustic soda is widely used in alumina and nickel refining processes, particularly in electric vehicle (EV) battery components, as well as in the pulp and paper and household industries. EDC, meanwhile, is the primary raw material for polyvinyl chloride (PVC), used across various construction sectors including plastic piping.
Chandra Asri had previously warned of security threats to plant operations from ormas engaging in thuggery and frequently demanding allocations. Director of Legal, External Affairs and Circular Economy Edi Rivai noted that such risks were not confined to the company's production area in Cilegon, Banten, but affected other industrial zones as well.
"Regarding ormas operating in other locations, Kadin itself has formed a group concerning industrial zones to address this ormas issue," Edi said, as quoted on Saturday (15 March 2025).
The company has also urged the government to provide legal certainty to ensure that ormas and other communities disrupting production activities are no longer tolerated.
Various videos circulating on Instagram, X and TikTok appear to show several parties, believed to include the Cilegon chapter of the Indonesian Chamber of Commerce and Industry (Kadin) and local ormas, demanding a share of the total investment earmarked for the plant's construction.
In one video uploaded via the TikTok account Fakta Banten on Sunday (11 May 2025), the parties were seen meeting with representatives of Chengda Engineering Co. Ltd, the contractor for the CA-EDC plant project. Several individuals wearing white and black uniforms bearing the Kadin emblem were visible and vocal during the meeting.
Besides 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 and made clear the purpose of the meeting — to demand a "portion" of the construction project.
"Without any tender, the allocation must be clear — Rp5 trillion for Kadin, Rp3 trillion for Kadin, without any tender," the man stated.
A Bisnis source familiar with the incident confirmed the events shown in the circulating video, though they were unable to provide further details on the situation.
Reports of the alleged investment "allocation" demands from ormas and the local Kadin chapter have been formally lodged with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM).
BKPM Deputy for Investment Implementation Control Eddy Junaedi confirmed that his office had received a report from the company concerned, namely Chandra Asri. He said he would summon the ormas and other parties involved.
"The company has reported the incident. We will invite Forkompinda, company representatives, and both national and regional Kadin to discuss the issue," Eddy told Bisnis on Tuesday (13 May 2025).
Eddy assured that BKPM would strengthen regulatory enforcement within the investment sphere and deploy the Anti-Thuggery Task Force (Satgas Premanisme) to prevent obstacles to investment realisation in Indonesia.
Bisnis also contacted Bobby Gafur Umar, Vice Chairman and Coordinator for Investment, Downstreaming and Environment at Kadin Indonesia, for confirmation, but had received no response by the time of publication.
The CA-EDC chemical plant owned by Chandra Asri has been designated a National Strategic Project (PSN). PT Chandra Asri Pacific Tbk (TPIA) declared its readiness to build the plant in Cilegon, Banten, following its designation as a PSN to support sustainable economic growth in Indonesia.
Chandra Asri Group President Director and CEO Erwin Ciputra previously expressed appreciation for the government's full support in designating the CA-EDC plant as a National Strategic Project, stating that the PSN status demonstrated a shared commitment to accelerating development in line with the company's mission as a growth partner.
"Through the construction of this CA-EDC plant, we hope to support the Asta Cita agenda by driving industrial downstreaming and reducing dependence on imported chemicals," Erwin said in an official statement on Tuesday (4 March 2025).
The CA-EDC plant was selected as a PSN through Presidential Regulation Number 12 of 2025 on the National Medium-Term Development Plan (RPJMN) 2025–2029, signed on 10 February 2025.
The project requires an investment of Rp15 trillion and will be managed by Chandra Asri Group subsidiary PT Chandra Asri Alkali (CAA). The plant will have a production capacity of 400,000 tonnes per year for wet caustic soda and 500,000 tonnes per year for ethylene dichloride (EDC).
Caustic soda is widely used in alumina and nickel refining processes, particularly in electric vehicle (EV) battery components, as well as in the pulp and paper and household industries. EDC, meanwhile, is the primary raw material for polyvinyl chloride (PVC), used across various construction sectors including plastic piping.
Chandra Asri had previously warned of security threats to plant operations from ormas engaging in thuggery and frequently demanding allocations. Director of Legal, External Affairs and Circular Economy Edi Rivai noted that such risks were not confined to the company's production area in Cilegon, Banten, but affected other industrial zones as well.
"Regarding ormas operating in other locations, Kadin itself has formed a group concerning industrial zones to address this ormas issue," Edi said, as quoted on Saturday (15 March 2025).
The company has also urged the government to provide legal certainty to ensure that ormas and other communities disrupting production activities are no longer tolerated.