Extortion Case Against National Strategic Project in Cilegon Referred to Police
BANTEN — The handling of a racketeering case involving individuals claiming to be local businesspeople who demanded Rp5 trillion in project allocations without a tender process from the management of PT Chengda in Cilegon, Banten, has been referred to the police.
PT Chengda is the main contractor for the construction of PT Chandra Asri Alkali (CAA), a chlor-alkali ethylene dichloride (CA-EDC) chemical plant. The project is listed as a National Strategic Project (PSN).
Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu said the handling of the extortion case had been handed over to the Banten Regional Police, including the investigation process and its outcomes.
"However, going forward we want to create a deterrent effect against wrongful actions to safeguard the investment climate in our country," Todotua said in an official statement in Jakarta on Thursday, 15 May 2025.
Previously, a viral video circulated showing a group of people claiming to represent local business associations and organisations in Cilegon, allegedly demanding Rp5 trillion in projects without a tender process for the construction of PT Chandra Asri Alkali (CAA). The CA-EDC plant is listed as a National Strategic Project under Presidential Regulation Number 12 of 2025 concerning the 2025–2029 National Medium-Term Development Plan (RPJMN).
In the video recording, a number of individuals wearing uniforms bearing business association insignia were seen attending a meeting, directly confronting and demanding project allocations without a tender process from representatives of the CAA plant construction contractor, Chengda Engineering Co Ltd.
In response, on Wednesday 14 May 2025, BKPM 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 representatives of PT Chandra Asri Alkali (CAA) at the Ministry of Investment and Downstreaming offices in Jakarta.
Todotua said the government was committed to ensuring the smooth progress of CAA's investment as one of the key pillars of national industrial downstreaming efforts, and that what occurred in Banten should be a concern for all parties and needed to be properly anticipated.
He also assured that the government would continue to be proactive in maintaining a conducive and attractive investment climate for investors.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that investment remains conducive and sustainable," Todotua said.
The Deputy Minister of Investment also stated that to prevent similar incidents in Banten, there needed to be strengthened oversight of business partnership arrangements. BKPM has established partnership procedures through Minister of Investment/Head of BKPM Regulation Number 1 of 2022 concerning Procedures for Implementing Partnerships in the Investment Sector between Large Enterprises and Micro, Small and Medium Enterprises in the Regions.
"The outcome of the meeting essentially recognises that investment involves many factors — firstly economic growth, secondly employment absorption, and then upskilling through technology transfer," Todotua said.
"Most importantly, there should be improved regional economic empowerment through the empowerment of local entrepreneurs," he added.
PT Chengda is the main contractor for the construction of PT Chandra Asri Alkali (CAA), a chlor-alkali ethylene dichloride (CA-EDC) chemical plant. The project is listed as a National Strategic Project (PSN).
Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu said the handling of the extortion case had been handed over to the Banten Regional Police, including the investigation process and its outcomes.
"However, going forward we want to create a deterrent effect against wrongful actions to safeguard the investment climate in our country," Todotua said in an official statement in Jakarta on Thursday, 15 May 2025.
Previously, a viral video circulated showing a group of people claiming to represent local business associations and organisations in Cilegon, allegedly demanding Rp5 trillion in projects without a tender process for the construction of PT Chandra Asri Alkali (CAA). The CA-EDC plant is listed as a National Strategic Project under Presidential Regulation Number 12 of 2025 concerning the 2025–2029 National Medium-Term Development Plan (RPJMN).
In the video recording, a number of individuals wearing uniforms bearing business association insignia were seen attending a meeting, directly confronting and demanding project allocations without a tender process from representatives of the CAA plant construction contractor, Chengda Engineering Co Ltd.
In response, on Wednesday 14 May 2025, BKPM 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 representatives of PT Chandra Asri Alkali (CAA) at the Ministry of Investment and Downstreaming offices in Jakarta.
Todotua said the government was committed to ensuring the smooth progress of CAA's investment as one of the key pillars of national industrial downstreaming efforts, and that what occurred in Banten should be a concern for all parties and needed to be properly anticipated.
He also assured that the government would continue to be proactive in maintaining a conducive and attractive investment climate for investors.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that investment remains conducive and sustainable," Todotua said.
The Deputy Minister of Investment also stated that to prevent similar incidents in Banten, there needed to be strengthened oversight of business partnership arrangements. BKPM has established partnership procedures through Minister of Investment/Head of BKPM Regulation Number 1 of 2022 concerning Procedures for Implementing Partnerships in the Investment Sector between Large Enterprises and Micro, Small and Medium Enterprises in the Regions.
"The outcome of the meeting essentially recognises that investment involves many factors — firstly economic growth, secondly employment absorption, and then upskilling through technology transfer," Todotua said.
"Most importantly, there should be improved regional economic empowerment through the empowerment of local entrepreneurs," he added.