Investment Ministry Safeguards Chandra Asri's Rp15 Trillion Project in Cilegon Against Intimidation
The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has reaffirmed its commitment to ensuring the smooth progress of a strategic investment by PT Chandra Asri Alkali (CAA), a subsidiary of PT Chandra Asri Pacific Tbk (TPIA), in the Cilegon industrial zone, Banten.
However, the national downstream industrialisation effort had encountered obstacles following demonstrative and intimidating actions by a number of individuals claiming to represent the Cilegon chapter of the Indonesian Chamber of Commerce and Industry (Kadin). The actions raised concerns about disruption to the investment climate being cultivated. Nevertheless, BKPM stood firm, ensuring that this high-value investment would not be derailed by pressure from irresponsible parties.
"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/Deputy Head of BKPM Todotua Pasaribu in a statement in Jakarta on Thursday (15 May 2025).
He said the government continues to take proactive steps to maintain a conducive and attractive investment climate for investors. This was demonstrated by the ministry's facilitation of a meeting between Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, representatives of the national and regional chambers of commerce, and representatives of PT Chandra Asri Alkali at the Ministry of Investment and Downstream Industries office in Jakarta on Wednesday (14 May).
During the forum, serious discussions were held regarding CAA's Rp15 trillion investment project, which had previously been disrupted by irresponsible individuals. They arrived under the pretext of representing an organisation, but their objective was clear: to demand project allocations without going through the proper tender process. The situation not only tarnished the investment climate but also served as a real test of the government's commitment to creating a clean and competitive business ecosystem.
Todotua stated that what occurred at the Chandra Asri project must be a concern for all parties and needs to be properly anticipated. "We regret the incident that took place in Cilegon, and it will be referred to law enforcement authorities. In this case, the Banten Provincial Police will conduct an investigation, and the outcome falls within the domain of law enforcement. Going forward, however, we want to establish a deterrent effect against improper actions to protect the investment climate in our country," Todotua said.
The Deputy Minister also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership arrangements. The ministry 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.
However, the national downstream industrialisation effort had encountered obstacles following demonstrative and intimidating actions by a number of individuals claiming to represent the Cilegon chapter of the Indonesian Chamber of Commerce and Industry (Kadin). The actions raised concerns about disruption to the investment climate being cultivated. Nevertheless, BKPM stood firm, ensuring that this high-value investment would not be derailed by pressure from irresponsible parties.
"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/Deputy Head of BKPM Todotua Pasaribu in a statement in Jakarta on Thursday (15 May 2025).
He said the government continues to take proactive steps to maintain a conducive and attractive investment climate for investors. This was demonstrated by the ministry's facilitation of a meeting between Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, representatives of the national and regional chambers of commerce, and representatives of PT Chandra Asri Alkali at the Ministry of Investment and Downstream Industries office in Jakarta on Wednesday (14 May).
During the forum, serious discussions were held regarding CAA's Rp15 trillion investment project, which had previously been disrupted by irresponsible individuals. They arrived under the pretext of representing an organisation, but their objective was clear: to demand project allocations without going through the proper tender process. The situation not only tarnished the investment climate but also served as a real test of the government's commitment to creating a clean and competitive business ecosystem.
Todotua stated that what occurred at the Chandra Asri project must be a concern for all parties and needs to be properly anticipated. "We regret the incident that took place in Cilegon, and it will be referred to law enforcement authorities. In this case, the Banten Provincial Police will conduct an investigation, and the outcome falls within the domain of law enforcement. Going forward, however, we want to establish a deterrent effect against improper actions to protect the investment climate in our country," Todotua said.
The Deputy Minister also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership arrangements. The ministry 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.