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 the investment climate in Indonesia must be dealt with and serve as a deterrent.
The statement was made in connection with alleged extortion carried out by several mass organisations and businesspeople against PT Chandra Asri Alkali (CAA). They reportedly demanded Rp5 trillion as a share of a Rp15 trillion project, without a tender process. A recording of the 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 national and regional Chambers of Commerce and Industry (KADIN), and other representatives at the Ministry of Investment and Downstreaming offices 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 important pillars in the national industrial downstreaming effort.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that investment remains conducive and sustainable," Todotua said in an official statement 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 carried out by several mass organisations and businesspeople against PT Chandra Asri Alkali (CAA). They reportedly demanded Rp5 trillion as a share of a Rp15 trillion project, without a tender process. A recording of the 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 national and regional Chambers of Commerce and Industry (KADIN), and other representatives at the Ministry of Investment and Downstreaming offices 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 important pillars in the national industrial downstreaming effort.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that investment remains conducive and sustainable," Todotua said in an official statement 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.