Hit with Rp5 Trillion Extortion Attempt, Will Chandra Asri Still Invest in Indonesia?
JAKARTA - An alleged extortion incident at the PT Chandra Asri Alkali (CAA) project has tarnished Indonesia's investment climate. Moreover, the construction of the Chandra Asri Alkali plant is designated as a National Strategic Project (PSN), in accordance with Presidential Regulation Number 12 of 2025 on the National Medium-Term Development Plan (RPJMN) 2025-2029. The PSN designation was signed by Prabowo on 10 February 2025.
The government swiftly took firm action by requesting law enforcement to pursue the Cilegon Chamber of Commerce (Kadin) individuals involved. "We regret the incident that occurred and we will hand the matter over to law enforcement, in this case the Banten Provincial Police, who will carry out the investigation process," said Deputy Minister of Investment and Downstreaming Todotua Pasaribu in Jakarta on Wednesday, 14 May 2025.
So will Chandra Asri's investment come to a halt? The management of PT Chandra Asri Pacific Tbk (TPIA) affirmed its commitment to continue major investment in Indonesia, despite being rocked by the alleged demand for project allocations by individuals from Kadin Cilegon. The company stated it would continue to comply with regulations and expressed hope for healthier cooperation among all parties going forward.
"We at Chandra Asri once again express our gratitude for being well facilitated, and of course Chandra Asri remains committed to investing in Indonesia," said TPIA Director of Legal and External Affairs Edi Riva'i at a press conference at the BKPM office.
**Investment Supports Economic Growth Target**
He added that his company supports the government's target of achieving 8 per cent economic growth. According to Edi, cooperation between investors and stakeholders must run synergistically so that development is not hampered by matters outside official mechanisms.
"The directives from the government, from Kadin, from the police, and also from the regional government are our commitment. We always adhere to compliance and prevailing regulations," he stressed.
The case involving Kadin members allegedly demanding project allocations came to light after a video circulated showing a suspected demand for Rp5 trillion in project allocations from Kadin Cilegon individuals directed at Chandra Asri. Edi acknowledged that the incident had caused disruption around the project, but his company remained optimistic about completing the construction on schedule.
"We also apologise if this project has caused any disruption," he said.
The government swiftly took firm action by requesting law enforcement to pursue the Cilegon Chamber of Commerce (Kadin) individuals involved. "We regret the incident that occurred and we will hand the matter over to law enforcement, in this case the Banten Provincial Police, who will carry out the investigation process," said Deputy Minister of Investment and Downstreaming Todotua Pasaribu in Jakarta on Wednesday, 14 May 2025.
So will Chandra Asri's investment come to a halt? The management of PT Chandra Asri Pacific Tbk (TPIA) affirmed its commitment to continue major investment in Indonesia, despite being rocked by the alleged demand for project allocations by individuals from Kadin Cilegon. The company stated it would continue to comply with regulations and expressed hope for healthier cooperation among all parties going forward.
"We at Chandra Asri once again express our gratitude for being well facilitated, and of course Chandra Asri remains committed to investing in Indonesia," said TPIA Director of Legal and External Affairs Edi Riva'i at a press conference at the BKPM office.
**Investment Supports Economic Growth Target**
He added that his company supports the government's target of achieving 8 per cent economic growth. According to Edi, cooperation between investors and stakeholders must run synergistically so that development is not hampered by matters outside official mechanisms.
"The directives from the government, from Kadin, from the police, and also from the regional government are our commitment. We always adhere to compliance and prevailing regulations," he stressed.
The case involving Kadin members allegedly demanding project allocations came to light after a video circulated showing a suspected demand for Rp5 trillion in project allocations from Kadin Cilegon individuals directed at Chandra Asri. Edi acknowledged that the incident had caused disruption around the project, but his company remained optimistic about completing the construction on schedule.
"We also apologise if this project has caused any disruption," he said.