Deputy Investment Minister Says Extortion Cases Severely Undermine Investment Climate
Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM, Todotua Pasaribu, has said that extortion cases such as that which occurred at PT Chandra Asri Alkali (PT CAA) in Cilegon are deeply concerning and detrimental to the investment climate. Moreover, such thuggery has also been experienced by companies and projects in other locations.
"For several months now we have been hearing about these acts of thuggery, whether from community groups, organisations or others, which are quite alarming and disruptive to the investment climate," Deputy Minister Todotua said at a press conference in Jakarta on Wednesday, 14 May 2025.
Todotua stressed that the case involving demands for a Rp5 trillion share of the chlor alkali-ethylene dichloride (CA-EDC) chemical plant project at PT CAA marks the government's first step in resolving such extortion cases.
"Indeed, with what has happened at Chandra Asri, this becomes a milestone for us to truly and comprehensively — and we from the central government, the Ministry of Investment and Downstream Industries — immediately address this matter directly," Todotua affirmed.
"This is a reflection of what we are discussing in the national context, a situation that has been occurring for months, not only in Banten province but in many other provinces as well. So we want to see what the steps forward will be, how we consolidate, and how we can resolve this issue," he added.
According to Todotua, the effort to combat the rise of extortion cases in the domestic industry aims to create a safe investment climate for entrepreneurs and investors.
"The objective is that we must provide — the state must provide — guarantees, both domestically and internationally, that investment in our country is conducive and competitive," he concluded.
"For several months now we have been hearing about these acts of thuggery, whether from community groups, organisations or others, which are quite alarming and disruptive to the investment climate," Deputy Minister Todotua said at a press conference in Jakarta on Wednesday, 14 May 2025.
Todotua stressed that the case involving demands for a Rp5 trillion share of the chlor alkali-ethylene dichloride (CA-EDC) chemical plant project at PT CAA marks the government's first step in resolving such extortion cases.
"Indeed, with what has happened at Chandra Asri, this becomes a milestone for us to truly and comprehensively — and we from the central government, the Ministry of Investment and Downstream Industries — immediately address this matter directly," Todotua affirmed.
"This is a reflection of what we are discussing in the national context, a situation that has been occurring for months, not only in Banten province but in many other provinces as well. So we want to see what the steps forward will be, how we consolidate, and how we can resolve this issue," he added.
According to Todotua, the effort to combat the rise of extortion cases in the domestic industry aims to create a safe investment climate for entrepreneurs and investors.
"The objective is that we must provide — the state must provide — guarantees, both domestically and internationally, that investment in our country is conducive and competitive," he concluded.