Government Vows Legal Action Against Thuggery Disrupting Petrochemical Plant Construction in Cilegon
JAKARTA — The government, through the Ministry of Investment and Downstreaming (Investment Coordinating Board/BKPM), has affirmed it will take legal action against acts of thuggery disrupting the construction of a petrochemical plant owned by PT Chandra Asri Alkali (CAA) in Cilegon, Banten. The move is aimed at maintaining a conducive investment climate in Indonesia, particularly for National Strategic Projects (PSN).
Deputy Minister of Investment and Downstreaming Todotua Pasaribu stated that the actions of a group of individuals who approached the project's main contractor, PT Chengda, with the intention of forcing their way into obtaining project work, had become a serious concern for the government. He said such actions tarnished the spirit of investment and required a deterrent effect.
"We deplore the incident and have referred it to law enforcement authorities. This is important to ensure there are no further similar actions that could disrupt the smooth implementation of investment in the country," said Todotua on Thursday (15/5).
Todotua added that the government would strengthen oversight of partnership arrangements between investors and local business operators, as stipulated in Minister of Investment Regulation Number 1 of 2022 on Investment Partnership Guidelines. He emphasised that investment should be capable of fostering the empowerment of regional entrepreneurs in a healthy and fair manner.
"The primary objective of investment is not only national economic growth, but also the improvement of local economies through the involvement of regional business operators," he added.
The construction of the PT CAA plant is included in the 2025–2029 National Medium-Term Development Plan (RPJMN) and has been designated as a National Strategic Project (PSN). The plant is projected to make a significant contribution to national exports, with potential export value reaching Rp 35 to 40 trillion by 2040.
Meanwhile, Banten Police Chief Inspector General Suyudi Ario Seto confirmed that his office would follow up on the report through thorough investigation and inquiry. He stressed that any attempt to obstruct investment would be processed through legal channels.
"If criminal elements are found, particularly those that disrupt the national investment climate, we will not hesitate to pursue legal proceedings. Our team has already moved to examine this case in depth," the Police Chief stated.
The decisive action by BKPM and the Banten Regional Police is expected to signal that the government will not tolerate any form of intimidation or coercion that could harm the business environment, particularly in the implementation of national strategic projects.
Deputy Minister of Investment and Downstreaming Todotua Pasaribu stated that the actions of a group of individuals who approached the project's main contractor, PT Chengda, with the intention of forcing their way into obtaining project work, had become a serious concern for the government. He said such actions tarnished the spirit of investment and required a deterrent effect.
"We deplore the incident and have referred it to law enforcement authorities. This is important to ensure there are no further similar actions that could disrupt the smooth implementation of investment in the country," said Todotua on Thursday (15/5).
Todotua added that the government would strengthen oversight of partnership arrangements between investors and local business operators, as stipulated in Minister of Investment Regulation Number 1 of 2022 on Investment Partnership Guidelines. He emphasised that investment should be capable of fostering the empowerment of regional entrepreneurs in a healthy and fair manner.
"The primary objective of investment is not only national economic growth, but also the improvement of local economies through the involvement of regional business operators," he added.
The construction of the PT CAA plant is included in the 2025–2029 National Medium-Term Development Plan (RPJMN) and has been designated as a National Strategic Project (PSN). The plant is projected to make a significant contribution to national exports, with potential export value reaching Rp 35 to 40 trillion by 2040.
Meanwhile, Banten Police Chief Inspector General Suyudi Ario Seto confirmed that his office would follow up on the report through thorough investigation and inquiry. He stressed that any attempt to obstruct investment would be processed through legal channels.
"If criminal elements are found, particularly those that disrupt the national investment climate, we will not hesitate to pursue legal proceedings. Our team has already moved to examine this case in depth," the Police Chief stated.
The decisive action by BKPM and the Banten Regional Police is expected to signal that the government will not tolerate any form of intimidation or coercion that could harm the business environment, particularly in the implementation of national strategic projects.