Cilegon Regional-Owned Enterprise Secures Rp 4.2 Billion from Land Lease to Chinese Company
The Regional-Owned Enterprise (BUMD) of Cilegon, PT Pelabuhan Cilegon Mandiri (PCM), has signed a land lease contract with the Chinese company, China Chengda Engineering Co., Ltd (Chengda). PCM has secured revenue of Rp 4.2 billion over a six-month period.
Cilegon Mayor Robinsar stated that the land lease is intended to support Chengda’s project needs, as the company is currently working on the PT Chandra Asri Alkali (CAA) chemical plant, which is still in the construction phase.
“We discussed the MoU or lease agreement earlier. They need land to store materials during the project, approximately 4 hectares for 6 months,” Robinsar said in a written statement (14/4/2026).
Furthermore, Robinsar explained that the lease value reaches around Rp 17.8 million per square metre excluding VAT, with a total lease value of Rp 4.2 billion for 6 months.
“The total is Rp 4.2 billion for 6 months. This is part of efforts towards transparency, as well as optimising assets that were previously unused,” he said.
According to him, the utilisation of PCM-owned land is open to other investors as long as they follow the appraisal price. The cooperation takes effect from 13 April 2026. PT Chengda, as the lessee, will begin preparations, including land clearing and installing boundary fences.
“Anyone can utilise it, as long as it matches the KJPP price. It’s possible that preparations will start tomorrow,” he said.
Robinsar hopes this cooperation can encourage more sustainable investments in the area.
“Hopefully in the future there will be more concrete cooperation, not just temporary. The hope is that the port can be built soon,” he said.
Meanwhile, PCM’s President Director, Muhammad Willy, stated that this cooperation continues the company’s efforts to increase asset utilisation.
“This is not the first time. Previously, there have also been asset utilisations with competitive lease values,” he said.
He mentioned that the lease value in this contract is above the industrial area market price, even approaching twice the appraisal value.
“We don’t want to be below market price,” he said.
In the future, PCM is open to the possibility of adding land area or extending the cooperation duration, adjusted to Chengda’s project needs.
“Currently 4 hectares for 6 months. It doesn’t rule out the possibility of increase, with a maximum duration of around 1 year, depending on their factory construction target in early 2027,” he explained.
Willy added that the stored materials consist of equipment and supporting materials for factory construction. He assured that security and environmental aspects will still be maintained.
“It must be safe. The area will also be fenced to prevent expansion,” he said.