Deputy Investment Minister Responds to Alleged Rp5 Trillion Extortion at Chandra Asri Project in Cilegon
Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu held meetings with several parties following allegations of extortion by individuals from the Indonesian Chamber of Commerce and Industry (Kadin) and local civil organisations targeting the PT Chandra Asri Alkali (PT CAA) project in Cilegon, Banten.
The meeting, held on Wednesday 14 May 2025, was attended by Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, Kadin Indonesia Deputy Coordinating Chairman for Law and Human Rights Azis Syamsuddin, and PT Chandra Asri Director of Legal and External Affairs Edi Rivai.
"This meeting was initiated by the Ministry of Investment and Downstream Industries because we received instructions from the President and the Minister (Rosan), who is currently abroad, to facilitate a response to the incident in the Cilegon area," said Todotua at the BKPM office in Jakarta.
The Deputy Minister expressed regret over the extortion incident at the National Strategic Project (PSN), stating that the case had been referred to the authorities.
"In essence, we deplore what has occurred. We will hand it over to law enforcement — Banten Regional Police will investigate the incident, and whatever the outcome, that is within the domain of the law," said Todotua.
He added that BKPM would ensure a deterrent effect for cases that have obstructed domestic investment.
"Going forward, the context here is that we want to create a deterrent effect, particularly with regard to the investment climate in our country," he continued.
The Trisakti University alumnus stressed that the government is currently striving to achieve an 8 per cent economic growth target, driven in part by the investment sector. In this regard, the government must be able to guarantee a safe investment environment within Indonesia.
According to the Deputy Minister, the alleged Rp5 trillion extortion by Kadin-linked individuals and associates is deeply concerning and disruptive to the domestic investment climate.
"For several months now we have been hearing about actions by community groups, organisations and others that are quite alarming and disruptive to investment activities," he said.
"With this incident at Chandra Asri, it becomes a milestone for us to respond comprehensively, and we from the central government, the Ministry of Investment and Downstream Industries, will address this directly," Todotua affirmed.
The construction project for a chlor-alkali ethylene dichloride (CA-EDC) chemical plant went viral after allegations emerged that certain parties had demanded a Rp5 trillion "share" of the total investment allocated for building the plant. In video footage circulated on social media, the individuals met with representatives from Chengda Engineering Co, the contractor for the CA-EDC plant construction, and demanded a substantial allocation.
"Without tender! The share must be clear — Rp5 trillion for Kadin, Rp3 trillion for Kadin, without tender. Divide it up!" said a man wearing a black and white Kadin uniform in the video.
The meeting, held on Wednesday 14 May 2025, was attended by Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, Kadin Indonesia Deputy Coordinating Chairman for Law and Human Rights Azis Syamsuddin, and PT Chandra Asri Director of Legal and External Affairs Edi Rivai.
"This meeting was initiated by the Ministry of Investment and Downstream Industries because we received instructions from the President and the Minister (Rosan), who is currently abroad, to facilitate a response to the incident in the Cilegon area," said Todotua at the BKPM office in Jakarta.
The Deputy Minister expressed regret over the extortion incident at the National Strategic Project (PSN), stating that the case had been referred to the authorities.
"In essence, we deplore what has occurred. We will hand it over to law enforcement — Banten Regional Police will investigate the incident, and whatever the outcome, that is within the domain of the law," said Todotua.
He added that BKPM would ensure a deterrent effect for cases that have obstructed domestic investment.
"Going forward, the context here is that we want to create a deterrent effect, particularly with regard to the investment climate in our country," he continued.
The Trisakti University alumnus stressed that the government is currently striving to achieve an 8 per cent economic growth target, driven in part by the investment sector. In this regard, the government must be able to guarantee a safe investment environment within Indonesia.
According to the Deputy Minister, the alleged Rp5 trillion extortion by Kadin-linked individuals and associates is deeply concerning and disruptive to the domestic investment climate.
"For several months now we have been hearing about actions by community groups, organisations and others that are quite alarming and disruptive to investment activities," he said.
"With this incident at Chandra Asri, it becomes a milestone for us to respond comprehensively, and we from the central government, the Ministry of Investment and Downstream Industries, will address this directly," Todotua affirmed.
The construction project for a chlor-alkali ethylene dichloride (CA-EDC) chemical plant went viral after allegations emerged that certain parties had demanded a Rp5 trillion "share" of the total investment allocated for building the plant. In video footage circulated on social media, the individuals met with representatives from Chengda Engineering Co, the contractor for the CA-EDC plant construction, and demanded a substantial allocation.
"Without tender! The share must be clear — Rp5 trillion for Kadin, Rp3 trillion for Kadin, without tender. Divide it up!" said a man wearing a black and white Kadin uniform in the video.