Indonesian Political, Business & Finance News

Government Intervenes After Alleged Extortion at Chandra Asri Project in Cilegon

| Source: GALERT
Jakarta — Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu held a meeting with several parties following an alleged extortion incident at the PT Chandra Asri Alkali (PT CAA) project in Cilegon, Banten, reportedly involving members of the Cilegon Chamber of Commerce and Industry (Kadin). The meeting brought together the Banten Provincial Government, Banten Regional Police, Kadin representatives, and the Chandra Asri board of directors.

According to Todotua, he received direct orders from President Prabowo Subianto and Minister of Investment and Downstreaming/BKPM Rosan Roeslani to resolve the matter.

"This meeting was initiated by the Ministry of Investment and Downstreaming because we received orders from the President and the Minister, who is currently abroad, to facilitate a response to the incident in the Cilegon area," he said at a press conference at his office in South Jakarta on Wednesday (14 May 2025).

Todotua stated that the government deeply regretted the incident at what is a National Strategic Project (PSN). He added that the government would hand the case over to the Banten Regional Police.

Todotua reminded that the government is striving to achieve its 8 per cent economic growth target, which is also driven by the investment sector. In this regard, he said, the government must be able to guarantee a conducive investment climate domestically.

"For several months now we have been hearing about actions by both community groups and organisations that have been quite troubling and disruptive to the investment climate," he said.

"The incident at Chandra Asri has become a milestone for us to respond comprehensively, and we at the central government, the Ministry of Investment and Downstreaming, will address this directly," Todotua affirmed.

Previously, based on a video posted on the X account @Nenk**, a number of individuals allegedly from Kadin Cilegon and local mass organisations met with representatives of Chengda Engineering Co, the contractor for the CA-EDC plant construction project. The video showed a person in white clothing demanding up to Rp 5 trillion.

"Without any tender, the allocation must be clear — Rp 5 trillion for Kadin, Rp 3 trillion for Kadin," said the man who claimed to be a member of Kadin Cilegon, as quoted on Tuesday (13 May 2025).
View JSON | Print