Indonesian Chamber of Commerce Vows Firm Action Against Alleged Extortion of Trillion-Rupiah Project
JAKARTA – The Indonesian Chamber of Commerce and Industry (Kadin) has affirmed it will take firm action against alleged extortion involving a project worth trillions of rupiah by individuals claiming to represent Kadin Cilegon.
Kadin Indonesia Chairman Anindya Novyan Bakrie stated that the organisation will not tolerate actions that damage Kadin's reputation and disrupt investment continuity.
The case came to light after a video circulated showing a person alleged to be a member of Kadin Cilegon demanding a "share" of projects worth up to Rp5 trillion from PT Chengda, the main contractor for PT Chandra Asri Petrochemical Tbk's project in Cilegon. In the video, the man openly stated the amount desired for Kadin, without any tender process.
"Without any tender, the share must be clear — Rp5 trillion for Kadin," the man said in the video.
In response, Anindya stated that Kadin Indonesia would immediately investigate the incident. If violations are proven, severe sanctions will be imposed, ranging from written warnings to revocation of mandates and freezing of organisational authority.
"There is no place for extortion or non-procedural approaches in our organisation," Anindya said firmly on Tuesday (13/5/2025).
As a preventive measure, Kadin Indonesia will draw up Standard Operating Procedures (SOPs) for regional participation in investment projects. These SOPs will include a strict code of ethics regarding relations between regional officials and investors and contractors.
Additionally, an internal audit will be conducted on the organisational structure of Kadin Cilegon City and Kadin Banten Province. The audit aims to ensure there has been no abuse of authority by individuals acting in Kadin's name.
Kadin Indonesia has also received an invitation from the Ministry of Investment/BKPM to attend a facilitation meeting to resolve investment issues related to the PT Chandra Asri project. A verification team will be formed to directly evaluate the role and actions of Kadin Cilegon and its affiliates.
"We will report this audit to BKPM and the Banten Provincial Government as an official clarification of the incident," Anindya said.
Anindya emphasised that Kadin Indonesia is committed to maintaining a healthy investment climate and serving as a strategic partner of the government in advancing the national business sector. Firm measures will be taken against anyone who deviates from ethical principles, the organisation's articles of association, and applicable law.
"This incident serves as an important reminder of the need to maintain integrity and public trust. Kadin remains consistent in supporting investment free from pressure or detrimental practices," he added.
For Kadin Indonesia, the incident represents an opportunity to strengthen organisational governance and promote the creation of a transparent and professional system.
Kadin Indonesia Chairman Anindya Novyan Bakrie stated that the organisation will not tolerate actions that damage Kadin's reputation and disrupt investment continuity.
The case came to light after a video circulated showing a person alleged to be a member of Kadin Cilegon demanding a "share" of projects worth up to Rp5 trillion from PT Chengda, the main contractor for PT Chandra Asri Petrochemical Tbk's project in Cilegon. In the video, the man openly stated the amount desired for Kadin, without any tender process.
"Without any tender, the share must be clear — Rp5 trillion for Kadin," the man said in the video.
In response, Anindya stated that Kadin Indonesia would immediately investigate the incident. If violations are proven, severe sanctions will be imposed, ranging from written warnings to revocation of mandates and freezing of organisational authority.
"There is no place for extortion or non-procedural approaches in our organisation," Anindya said firmly on Tuesday (13/5/2025).
As a preventive measure, Kadin Indonesia will draw up Standard Operating Procedures (SOPs) for regional participation in investment projects. These SOPs will include a strict code of ethics regarding relations between regional officials and investors and contractors.
Additionally, an internal audit will be conducted on the organisational structure of Kadin Cilegon City and Kadin Banten Province. The audit aims to ensure there has been no abuse of authority by individuals acting in Kadin's name.
Kadin Indonesia has also received an invitation from the Ministry of Investment/BKPM to attend a facilitation meeting to resolve investment issues related to the PT Chandra Asri project. A verification team will be formed to directly evaluate the role and actions of Kadin Cilegon and its affiliates.
"We will report this audit to BKPM and the Banten Provincial Government as an official clarification of the incident," Anindya said.
Anindya emphasised that Kadin Indonesia is committed to maintaining a healthy investment climate and serving as a strategic partner of the government in advancing the national business sector. Firm measures will be taken against anyone who deviates from ethical principles, the organisation's articles of association, and applicable law.
"This incident serves as an important reminder of the need to maintain integrity and public trust. Kadin remains consistent in supporting investment free from pressure or detrimental practices," he added.
For Kadin Indonesia, the incident represents an opportunity to strengthen organisational governance and promote the creation of a transparent and professional system.