Deputy Investment Minister to Refer Alleged Extortion of Chandra Asri Project to Law Enforcement
Jakarta — Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu will refer the alleged extortion case by Cilegon Chamber of Commerce (Kadin) officials against Chandra Asri Group's Chlor Alkali-Ethylene Dichloride (CA-EDC) factory project to law enforcement authorities.
According to Todotua, the move is necessary to create a deterrent effect amid the government's efforts to safeguard the investment climate. He stated that the government deeply regretted the incident and hoped there would be no similar occurrences in the future.
"The Banten Provincial Police will carry out an investigation into what happened, and whatever the outcome, that falls within the domain of law enforcement. But the key point going forward is that we want to create a deterrent effect, particularly with regard to the investment climate in our country," Todotua said firmly at a press conference at his office in Central Jakarta on Wednesday (14/5/2025).
He explained that investment is fundamentally expected to drive economic growth, absorb labour, facilitate technology transfer, and empower regional economies. However, in practice, many incidents occur outside established corridors and mechanisms. This is what the government intends to rectify in order to maintain a favourable investment climate.
Domestic capital investment will also be made more transparent. "Local business players will provide a list of their entrepreneurs — who is capable and eligible to contribute — and the regional government will conduct the selection process," he said.
"Investors will also provide a list of work that can be contributed to local business players. So this will take the form of transparency, and the hope going forward is that we can manage this well and there will be nothing more outside the established corridors," Todotua added.
On the same occasion, Banten Police Chief Inspector General Suyudi Ario Seto said he would immediately deploy a team to the field. In this matter, the police form part of the Investment Acceleration Task Force.
"The Banten Police Chief will deploy a team and will conduct investigation efforts, and if there is suspected criminal activity — especially as this disrupts the investment climate in this country — we will certainly carry out preliminary and full investigations and process it legally," Suyudi stated.
Meanwhile, Banten Governor Andra Soni expressed hope that there would be no further similar incidents. He affirmed the Banten Provincial Government's commitment to supporting investment realisation in pursuit of the 8 per cent economic growth target.
"We already have a commitment that investment is one of our efforts to achieve the 8 per cent growth target, and God willing, going forward there will be no more incidents like the one that occurred," he concluded.
Cilegon Mayor Robinsar said the alleged extortion of the Rp 5 trillion Chandra Asri project tender was triggered by miscommunication. He said communication about the project to local entrepreneurs was slow, causing disappointment. He also noted that local entrepreneurs demanded openness and involvement in the project.
Nevertheless, Robinsar stressed that acts of pressure against investment must not be repeated, especially as Indonesia continues to compete with neighbouring countries to attract investment.
"There was perhaps slow communication, which ultimately led to disappointment or frustration. However, such methods are certainly not justified, and we regret that as well. But the key point is that going forward, this will serve as a collective evaluation for us," Robinsar concluded.
According to Todotua, the move is necessary to create a deterrent effect amid the government's efforts to safeguard the investment climate. He stated that the government deeply regretted the incident and hoped there would be no similar occurrences in the future.
"The Banten Provincial Police will carry out an investigation into what happened, and whatever the outcome, that falls within the domain of law enforcement. But the key point going forward is that we want to create a deterrent effect, particularly with regard to the investment climate in our country," Todotua said firmly at a press conference at his office in Central Jakarta on Wednesday (14/5/2025).
He explained that investment is fundamentally expected to drive economic growth, absorb labour, facilitate technology transfer, and empower regional economies. However, in practice, many incidents occur outside established corridors and mechanisms. This is what the government intends to rectify in order to maintain a favourable investment climate.
Domestic capital investment will also be made more transparent. "Local business players will provide a list of their entrepreneurs — who is capable and eligible to contribute — and the regional government will conduct the selection process," he said.
"Investors will also provide a list of work that can be contributed to local business players. So this will take the form of transparency, and the hope going forward is that we can manage this well and there will be nothing more outside the established corridors," Todotua added.
On the same occasion, Banten Police Chief Inspector General Suyudi Ario Seto said he would immediately deploy a team to the field. In this matter, the police form part of the Investment Acceleration Task Force.
"The Banten Police Chief will deploy a team and will conduct investigation efforts, and if there is suspected criminal activity — especially as this disrupts the investment climate in this country — we will certainly carry out preliminary and full investigations and process it legally," Suyudi stated.
Meanwhile, Banten Governor Andra Soni expressed hope that there would be no further similar incidents. He affirmed the Banten Provincial Government's commitment to supporting investment realisation in pursuit of the 8 per cent economic growth target.
"We already have a commitment that investment is one of our efforts to achieve the 8 per cent growth target, and God willing, going forward there will be no more incidents like the one that occurred," he concluded.
Cilegon Mayor Robinsar said the alleged extortion of the Rp 5 trillion Chandra Asri project tender was triggered by miscommunication. He said communication about the project to local entrepreneurs was slow, causing disappointment. He also noted that local entrepreneurs demanded openness and involvement in the project.
Nevertheless, Robinsar stressed that acts of pressure against investment must not be repeated, especially as Indonesia continues to compete with neighbouring countries to attract investment.
"There was perhaps slow communication, which ultimately led to disappointment or frustration. However, such methods are certainly not justified, and we regret that as well. But the key point is that going forward, this will serve as a collective evaluation for us," Robinsar concluded.