Indonesian Political, Business & Finance News

Cilegon Mayor Summoned by BKPM over Chamber of Commerce's Demand for Rp5 Trillion in Projects Without Tender

| Source: GALERT
Cilegon Mayor Robinsar was summoned by the Investment Coordinating Board (BKPM) in connection with the incident involving the Cilegon Chamber of Commerce and Industry (Kadin) demanding Rp5 trillion worth of projects without a tender process, on Wednesday 14 May 2025.

The summoning of Mayor Robinsar by BKPM was reportedly to clarify the controversy surrounding Kadin Cilegon's demand for a share of Rp5 trillion in projects without tender from Chengda Engineering Co, the main contractor for the construction of the Chandra Asri Alkali (CAA) plant.

In a viral video that recently circulated, Kadin Cilegon was seen accompanied by local community organisations including HIPPI Cilegon, HIPMI Baja, GAPENSI and HNSI, making the project demands to Chengda Engineering Co.

Providing an update following his summons by BKPM, Robinsar revealed several matters discussed in the aftermath of the incident. The city's top official assured that the controversy would not alter Chandra Asri Alkali's decision to invest in Cilegon.

"Regarding yesterday's meeting, firstly, thankfully the incident has not changed CAA's position — they will continue with their investment and construction," Robinsar told reporters at Seruni Terminal on Thursday 15 May 2025.

Robinsar also addressed the matter of law enforcement following the controversy, as outlined by the Banten Regional Police. "Secondly, there needs to be law enforcement, as conveyed by the Regional Police Chief, and this will be followed up promptly with summonses being issued," said the politician who secured the highest number of votes in the 2024 Cilegon Legislative Election.

The Cilegon Mayor also called on all parties to safeguard the investment climate and stability in the city. He touched upon the involvement of local entrepreneurs in the CAA construction project, stressing that their participation must comply with prevailing regulations.

"Thirdly, everyone must maintain a conducive climate. And fourthly, local entrepreneurs will, God willing, be involved — but through proper channels and in accordance with applicable regulations to ensure greater order," he said.

Robinsar warned that such incidents must not recur. He expressed confidence that Kadin Cilegon, as the umbrella organisation for business owners, understands the proper way to participate in investment activities in the city.

"We had already communicated before going to BKPM. I told them this must be a one-off — it cannot happen again. We must change. Kadin members are business people; they should know the right and proper way to do things," he explained.

"God willing, going forward, not just Kadin but all layers of society will be involved. We will try to organise a coffee morning or afternoon tea. If possible, to cool down what had been a heated climate with investors, industries, regional agencies, community leaders and entrepreneurs — I will set a time and schedule it," he added.

Furthermore, Robinsar urged all Cilegon residents to maintain a conducive investment environment in the city located at the western tip of Java.

"We appeal to the entire community to maintain stability — no more pressure, no more intimidation of investors. Finding investors is not easy; it is difficult and troublesome. So let us all safeguard this together. I am confident that when investment grows, the community will also prosper," he said.

Robinsar also called on the public to jointly protect investment in Cilegon, not only within the city government's regional agencies but across all levels of society.

"I also frequently tell investors and industries: if you face difficulties related to the Cilegon city government, please inform us," he urged.

Robinsar further affirmed that he would take action against any Cilegon city government staff — from village to sub-district level through to regional agencies — found to be obstructing investment.

"If any of our regional agencies are being difficult or obstructing your access or permits, report it to us. We will oversee it and take firm action against those who create obstacles," he stated.

"So I stress again to regional agencies, village heads and sub-district chiefs: no one is permitted to obstruct investment activities in Cilegon. Robinsar and Fajar [the Mayor and Deputy Mayor] are committed to resolving all of this," he added.

It was previously reported that Mayor Robinsar confirmed being summoned by BKPM for clarification alongside other stakeholders — including Banten Governor Andra Soni and the Regional Police Chief — regarding the Kadin Cilegon project demands incident.

"Today [Wednesday 14 May 2025] we were also summoned by BKPM for clarification together with the Governor, the Regional Police Chief and the District Police Chief. God willing, we will provide an update on the outcome of the meeting," he concluded.
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