Chlor Alkali-EDC Chemical Plant Construction in Cilegon Remains on Schedule Despite Viral Project Dispute
JAKARTA — Deputy Minister of Investment and Downstreaming/Deputy Chairman of the Investment Coordinating Board (BKPM) Todotua Pasaribu has stated that the construction of a chlor alkali-ethylene dichloride (CA-EDC) chemical plant in Cilegon, Banten, remains on track and will be completed on time.
The project came under the spotlight after a viral video showed a number of businesspeople in Cilegon demanding project allocations without going through a tender process. The construction project belongs to PT Chandra Asri Alkali (CAA), a subsidiary of Indonesia's largest chemical company, PT Chandra Asri Petrochemical Tbk, and is classified as a national strategic project (PSN).
"It continues to progress and must be on time. The government is ensuring it must be on time," said Todotua at the Ministry of Investment office on Wednesday (14 May 2025).
On Wednesday, Todotua summoned Banten Governor Andra Soni, Banten Police Chief Inspector General Suyudi Ario Seto, Director of Legal, External Relations and Circular Economy at Chandra Asri Group Edi Rivai, and Deputy Coordinating Chairman for Law and Human Rights at the Indonesian Chamber of Commerce and Industry (Kadin) Azis Syamsuddin to discuss the matter.
Todotua stated that the government regretted the incident that went viral on social media. The central government has asked the Banten Regional Police to conduct further investigations.
"We indeed regret what happened, and we will hand this over to law enforcement authorities — in this case the Banten Provincial Police, who will carry out the examination process regarding the incident," he said.
"Whatever the outcome, that will be the domain of law enforcement. But essentially going forward, the context of this summons is to create a deterrent effect, particularly with regard to the investment climate in our country," he added.
Banten Police Chief Inspector General Suyudi Ario Seto said his office would deploy a team to investigate conditions on the ground further. He affirmed that legal action would be taken if criminal elements were found in the project allocation demands.
"We from the Banten Regional Police will deploy a team and conduct investigative efforts, and if there is suspected criminal activity — especially as this disrupts the investment climate in this country — we will certainly carry out investigation and inquiry proceedings, and we will process this legally," Suyudi explained.
The controversy arose after a viral video circulated in recent days showing a number of businesspeople in Cilegon, Banten, reportedly demanding project allocations without going through a tender process. The local businesspeople were said to be demanding projects worth Rp 5 trillion from PT Chandra Asri Alkali (CAA). The video showed several men identifying themselves as representatives of the Cilegon Chamber of Commerce and Industry (Kadin) in a heated confrontation with Chengda Engineering (CEE), a Chinese construction contractor appointed by CAA.
The project came under the spotlight after a viral video showed a number of businesspeople in Cilegon demanding project allocations without going through a tender process. The construction project belongs to PT Chandra Asri Alkali (CAA), a subsidiary of Indonesia's largest chemical company, PT Chandra Asri Petrochemical Tbk, and is classified as a national strategic project (PSN).
"It continues to progress and must be on time. The government is ensuring it must be on time," said Todotua at the Ministry of Investment office on Wednesday (14 May 2025).
On Wednesday, Todotua summoned Banten Governor Andra Soni, Banten Police Chief Inspector General Suyudi Ario Seto, Director of Legal, External Relations and Circular Economy at Chandra Asri Group Edi Rivai, and Deputy Coordinating Chairman for Law and Human Rights at the Indonesian Chamber of Commerce and Industry (Kadin) Azis Syamsuddin to discuss the matter.
Todotua stated that the government regretted the incident that went viral on social media. The central government has asked the Banten Regional Police to conduct further investigations.
"We indeed regret what happened, and we will hand this over to law enforcement authorities — in this case the Banten Provincial Police, who will carry out the examination process regarding the incident," he said.
"Whatever the outcome, that will be the domain of law enforcement. But essentially going forward, the context of this summons is to create a deterrent effect, particularly with regard to the investment climate in our country," he added.
Banten Police Chief Inspector General Suyudi Ario Seto said his office would deploy a team to investigate conditions on the ground further. He affirmed that legal action would be taken if criminal elements were found in the project allocation demands.
"We from the Banten Regional Police will deploy a team and conduct investigative efforts, and if there is suspected criminal activity — especially as this disrupts the investment climate in this country — we will certainly carry out investigation and inquiry proceedings, and we will process this legally," Suyudi explained.
The controversy arose after a viral video circulated in recent days showing a number of businesspeople in Cilegon, Banten, reportedly demanding project allocations without going through a tender process. The local businesspeople were said to be demanding projects worth Rp 5 trillion from PT Chandra Asri Alkali (CAA). The video showed several men identifying themselves as representatives of the Cilegon Chamber of Commerce and Industry (Kadin) in a heated confrontation with Chengda Engineering (CEE), a Chinese construction contractor appointed by CAA.