Deputy Investment Minister to Summon Individuals in Alleged Extortion of Cilegon Chemical Plant Project
JAKARTA — Deputy Minister of Investment and Downstreaming/Deputy of the Investment Coordinating Board (BKPM) Todotua Pasaribu has said his office will summon the individuals appearing in a video allegedly depicting the extortion of those responsible for the construction of a chlor alkali-ethylene dichloride (CA-EDC) chemical plant in Cilegon. However, Todotua did not specify when the summons would be issued.
"Yes, we will carry out the summons. We will carry out the summons, and then there will be a mechanism going forward," Todotua said at the Ministry of Investment office on Wednesday (14 May 2025).
On that same day, Todotua had already convened Banten Governor Andra Soni, Cilegon Mayor Robinsar, Banten Police Chief Inspector General Suyudi Ario Seto, Chandra Asri Group's Director of Legal, External Relations and Circular Economy Edi Rivai, and Deputy Coordinating Chairman for Law and Human Rights at the Indonesian Chamber of Commerce and Industry (Kadin) Azis Syamsuddin at his office to discuss the matter that has drawn significant public attention.
The alleged extortion went viral after a video surfaced on social media showing a number of businessmen in Cilegon, Banten, demanding project allocations without going through a tender process. The local businessmen were reported to have demanded projects worth Rp 5 trillion from PT Chandra Asri Alkali (CAA), a subsidiary of Indonesia's largest chemical company, PT Chandra Asri Petrochemical Tbk.
The uploaded video shows several men identifying themselves as representatives of the Cilegon chapter of Kadin in a heated confrontation with Chengda Engineering (CEE), a Chinese construction contractor appointed by CAA. The local businessmen were seen pressuring for a portion of the major project work in the area to be awarded directly to them without a formal bidding process. In the video, they are seen arriving en masse at the Krakatau Steel industrial zone in Cilegon wearing white uniforms and construction helmets. The project work they demanded relates to the construction of the chlor alkali-ethylene dichloride chemical plant.
When asked whether the businessmen in the video were indeed members of the Banten Provincial Kadin, Todotua declined to answer. According to him, what matters is finding a resolution rather than apportioning blame.
"We are not speaking in a partial context of finding who is at fault — that is not the point. Rather, this is a reflection; we are speaking in a national context where this situation has been occurring for months, not only in Banten Province but in many other provinces as well," Todotua explained.
"So we want to see what the steps forward are, how we can consolidate and resolve this issue. The state must provide guarantees both domestically and internationally regarding investment," he added.
In his remarks on Wednesday, Todotua also stated that the government regrets the alleged extortion and has asked the Banten Regional Police to investigate conditions on the ground further. He affirmed that legal proceedings would be pursued against the businessmen should they be proven to have committed criminal acts.
"Yes, we will carry out the summons. We will carry out the summons, and then there will be a mechanism going forward," Todotua said at the Ministry of Investment office on Wednesday (14 May 2025).
On that same day, Todotua had already convened Banten Governor Andra Soni, Cilegon Mayor Robinsar, Banten Police Chief Inspector General Suyudi Ario Seto, Chandra Asri Group's Director of Legal, External Relations and Circular Economy Edi Rivai, and Deputy Coordinating Chairman for Law and Human Rights at the Indonesian Chamber of Commerce and Industry (Kadin) Azis Syamsuddin at his office to discuss the matter that has drawn significant public attention.
The alleged extortion went viral after a video surfaced on social media showing a number of businessmen in Cilegon, Banten, demanding project allocations without going through a tender process. The local businessmen were reported to have demanded projects worth Rp 5 trillion from PT Chandra Asri Alkali (CAA), a subsidiary of Indonesia's largest chemical company, PT Chandra Asri Petrochemical Tbk.
The uploaded video shows several men identifying themselves as representatives of the Cilegon chapter of Kadin in a heated confrontation with Chengda Engineering (CEE), a Chinese construction contractor appointed by CAA. The local businessmen were seen pressuring for a portion of the major project work in the area to be awarded directly to them without a formal bidding process. In the video, they are seen arriving en masse at the Krakatau Steel industrial zone in Cilegon wearing white uniforms and construction helmets. The project work they demanded relates to the construction of the chlor alkali-ethylene dichloride chemical plant.
When asked whether the businessmen in the video were indeed members of the Banten Provincial Kadin, Todotua declined to answer. According to him, what matters is finding a resolution rather than apportioning blame.
"We are not speaking in a partial context of finding who is at fault — that is not the point. Rather, this is a reflection; we are speaking in a national context where this situation has been occurring for months, not only in Banten Province but in many other provinces as well," Todotua explained.
"So we want to see what the steps forward are, how we can consolidate and resolve this issue. The state must provide guarantees both domestically and internationally regarding investment," he added.
In his remarks on Wednesday, Todotua also stated that the government regrets the alleged extortion and has asked the Banten Regional Police to investigate conditions on the ground further. He affirmed that legal proceedings would be pursued against the businessmen should they be proven to have committed criminal acts.