Investment Ministry Commits to Safeguarding Investment Climate Following Cilegon Incident
JAKARTA - The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has committed to ensuring smooth investment flows and 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 the investment climate remains conducive and sustainable," said Deputy Minister of Investment and Downstream Industries/BKPM, Todotua Pasaribu, in a press statement on Thursday (15/5/2025).
He stressed that the recent events in Cilegon City, Banten, must be given serious attention by all parties and properly anticipated. The Ministry of Investment and Downstream Industries/BKPM, in its capacity as Chair of the Investment Acceleration Task Force, together with relevant government bodies and authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
According to Pasaribu, the government is committed to ensuring the smooth progress of PT Chandra Asri Alkali's (CAA) investment. The PT CAA project is included in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025.
The PT CAA project is also part of the downstream industrialisation programme promoted by the government through the development of petrochemical downstream products, with potential export value reaching approximately Rp 35-40 trillion by 2040.
"We deplore the incident that occurred in Cilegon, and the matter will be handed over to law enforcement authorities. In this case, the Banten Regional Police will conduct an investigation, and the outcome falls within the domain of law enforcement. However, going forward, we wish to establish a deterrent effect against improper actions in order to safeguard our country's investment climate," Pasaribu affirmed.
To prevent a recurrence of the Banten incident, he said there is a need to strengthen oversight of business partnership arrangements. The Ministry of Investment and Downstream Industries/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 key outcomes of the meeting are essentially that investment involves many factors: first, economic growth; second, labour absorption; and then upskilling through technology transfer. Most importantly, how there can be improved regional economic empowerment through the empowerment of local entrepreneurs," he concluded.
Banten Governor Andra Soni expressed his support for the joint commitment to maintaining a conducive investment climate. "We have reaffirmed our commitment to supporting the realisation of investment, particularly in Banten Province, so that it can proceed smoothly, on schedule, and deliver benefits to the Banten Province area, especially Cilegon City," said Andra.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," said Deputy Minister of Investment and Downstream Industries/BKPM, Todotua Pasaribu, in a press statement on Thursday (15/5/2025).
He stressed that the recent events in Cilegon City, Banten, must be given serious attention by all parties and properly anticipated. The Ministry of Investment and Downstream Industries/BKPM, in its capacity as Chair of the Investment Acceleration Task Force, together with relevant government bodies and authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
According to Pasaribu, the government is committed to ensuring the smooth progress of PT Chandra Asri Alkali's (CAA) investment. The PT CAA project is included in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025.
The PT CAA project is also part of the downstream industrialisation programme promoted by the government through the development of petrochemical downstream products, with potential export value reaching approximately Rp 35-40 trillion by 2040.
"We deplore the incident that occurred in Cilegon, and the matter will be handed over to law enforcement authorities. In this case, the Banten Regional Police will conduct an investigation, and the outcome falls within the domain of law enforcement. However, going forward, we wish to establish a deterrent effect against improper actions in order to safeguard our country's investment climate," Pasaribu affirmed.
To prevent a recurrence of the Banten incident, he said there is a need to strengthen oversight of business partnership arrangements. The Ministry of Investment and Downstream Industries/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 key outcomes of the meeting are essentially that investment involves many factors: first, economic growth; second, labour absorption; and then upskilling through technology transfer. Most importantly, how there can be improved regional economic empowerment through the empowerment of local entrepreneurs," he concluded.
Banten Governor Andra Soni expressed his support for the joint commitment to maintaining a conducive investment climate. "We have reaffirmed our commitment to supporting the realisation of investment, particularly in Banten Province, so that it can proceed smoothly, on schedule, and deliver benefits to the Banten Province area, especially Cilegon City," said Andra.