Deputy Investment Minister Demands Deterrent Action Against Extortion Threatening Investment Climate
JAKARTA — Deputy Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM), Todotua Pasaribu, has affirmed that any action disrupting Indonesia's investment climate must be dealt with and serve as a deterrent.
The statement was made in connection with alleged extortion by several mass organisations and businesspeople targeting PT Chandra Asri Alkali (CAA). They reportedly demanded Rp5 trillion as a share of a Rp15 trillion project, without going through a tender process. A recording of a meeting between CAA representatives and Cilegon-based mass organisations and businesspeople went viral on social media.
The Ministry of Investment and Downstreaming facilitated a meeting between Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, representatives of the central and regional Chambers of Commerce and Industry (KADIN), and other representatives at the Ministry of Investment and Downstreaming office in Jakarta on Wednesday (14 May 2025).
Todotua said the government is committed to ensuring the smooth progress of CAA's investment as one of the key pillars in national industrial downstreaming efforts.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," Todotua said in an official statement received on Thursday (15 May 2025).
He stated that the current situation in Banten must be a concern for all parties and needs to be properly anticipated. As Chairman of the Investment Acceleration Task Force, he and relevant government officials and authorities will take swift and concrete steps to ensure the smooth implementation of investment projects.
The statement was made in connection with alleged extortion by several mass organisations and businesspeople targeting PT Chandra Asri Alkali (CAA). They reportedly demanded Rp5 trillion as a share of a Rp15 trillion project, without going through a tender process. A recording of a meeting between CAA representatives and Cilegon-based mass organisations and businesspeople went viral on social media.
The Ministry of Investment and Downstreaming facilitated a meeting between Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, representatives of the central and regional Chambers of Commerce and Industry (KADIN), and other representatives at the Ministry of Investment and Downstreaming office in Jakarta on Wednesday (14 May 2025).
Todotua said the government is committed to ensuring the smooth progress of CAA's investment as one of the key pillars in national industrial downstreaming efforts.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," Todotua said in an official statement received on Thursday (15 May 2025).
He stated that the current situation in Banten must be a concern for all parties and needs to be properly anticipated. As Chairman of the Investment Acceleration Task Force, he and relevant government officials and authorities will take swift and concrete steps to ensure the smooth implementation of investment projects.