Cilegon Business Chamber Accused of Demanding Project Shares from Foreign Investor Without Tender
A short video circulating on social media shows a group of people arriving at the Krakatau Steel industrial zone in Cilegon, requesting a meeting with foreign investors at PT Chandra Asri Alkali. The group, believed to include members of the Cilegon Chamber of Commerce and Industry (Kadin) and local community organisations, demanded a share of the total Rp15 trillion investment allocated for factory construction, without any tendering process.
Business figures in Cilegon reportedly demanded Rp5 trillion worth of project work without tender from PT Chandra Asri Alkali (CAA). "Without any tender, the allocation must be clear — Rp5 trillion for Kadin, or Rp3 trillion for Kadin, without any tender," said one Kadin member, as quoted from the circulating video.
In response, the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) and Kadin Indonesia announced plans to discuss the alleged extortion — the demand for project shares from investors — carried out by certain Kadin Cilegon officials.
A meeting between both parties was scheduled at the BKPM building in South Jakarta on Wednesday, 14 May 2025. The project in question is the construction of a chlor-alkali–ethylene dichloride (CA-EDC) chemical plant owned by Chandra Asri Group.
"The meeting is today. We are holding the meeting at BKPM to invite all parties," said Kadin Indonesia Deputy Chairman Andi Yuslim Patawari to reporters.
Andi explained that Kadin Indonesia is conducting an investigation following the emergence of the extortion reports on social media. He assured that the matter would be handled thoroughly.
"One of our concerns is the conflict in Cilegon, where people are acting in Kadin's name — we must resolve this. If we don't act, we risk creating the perception that thuggery is more powerful," he said.
He expressed regret over the practice of demanding project shares in Kadin Indonesia's name, noting that such thuggery only erodes investor confidence.
"We deeply regret this. Investment trust and investors could be lost. We must not let Vietnam and Thailand take this opportunity. Investors could easily flee abroad," he said.
Business figures in Cilegon reportedly demanded Rp5 trillion worth of project work without tender from PT Chandra Asri Alkali (CAA). "Without any tender, the allocation must be clear — Rp5 trillion for Kadin, or Rp3 trillion for Kadin, without any tender," said one Kadin member, as quoted from the circulating video.
In response, the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) and Kadin Indonesia announced plans to discuss the alleged extortion — the demand for project shares from investors — carried out by certain Kadin Cilegon officials.
A meeting between both parties was scheduled at the BKPM building in South Jakarta on Wednesday, 14 May 2025. The project in question is the construction of a chlor-alkali–ethylene dichloride (CA-EDC) chemical plant owned by Chandra Asri Group.
"The meeting is today. We are holding the meeting at BKPM to invite all parties," said Kadin Indonesia Deputy Chairman Andi Yuslim Patawari to reporters.
Andi explained that Kadin Indonesia is conducting an investigation following the emergence of the extortion reports on social media. He assured that the matter would be handled thoroughly.
"One of our concerns is the conflict in Cilegon, where people are acting in Kadin's name — we must resolve this. If we don't act, we risk creating the perception that thuggery is more powerful," he said.
He expressed regret over the practice of demanding project shares in Kadin Indonesia's name, noting that such thuggery only erodes investor confidence.
"We deeply regret this. Investment trust and investors could be lost. We must not let Vietnam and Thailand take this opportunity. Investors could easily flee abroad," he said.