Indonesian Political, Business & Finance News

Government Hands Thuggery Case Against PT Chengda Management to Police to Protect Investment Climate

| Source: GALERT
Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu said his office has handed over the resolution of a thuggery case against the management of PT Chengda, the main contractor of PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten, to the police.

"We regret the incident that occurred in Cilegon and it will be handed over to law enforcement. In this case, the Banten Provincial Police will conduct the investigation process and the results will be within the domain of law enforcement," said Todotua, quoted from an official statement in Jakarta on Thursday.

"However, going forward we want to provide a deterrent effect against improper actions to safeguard the investment climate in our country," he added.

Previously on Wednesday (14 May), BKPM facilitated a meeting between Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, representatives of the central and regional Chambers of Commerce and Industry (Kadin), and representatives of PT Chandra Asri Alkali (CAA) at the Ministry of Investment and Downstreaming office in Jakarta.

Todotua said the government is committed to ensuring the smooth operation of CAA's investment as one of the important pillars in national industrial downstreaming efforts, and that what happened in Banten must be a concern for all parties and needs to be properly anticipated.

He also assured that the government continues 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," said Todotua.

The Deputy Minister of Investment also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership patterns. The Ministry of Investment and Downstreaming/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 is that investment has many factors — first, it concerns economic growth; second, it concerns labour absorption; then it concerns upskilling through technology transfer," said Todotua.

"Most importantly, how there can be improved regional economic empowerment through the empowerment of local entrepreneurs," he added.
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