Investment Ministry Takes Proactive Steps to Safeguard Banten's Investment Climate After Rp15 Trillion Project Disruption
Warta Ekonomi, Jakarta - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has taken proactive steps to maintain a conducive and attractive investment climate for investors. The move involved facilitating a meeting between Banten Governor Andra Soni, Banten Regional Police Chief Inspector General Suyudi Ario Seto, representatives of the Indonesian Chamber of Commerce and Industry (KADIN) at both central and regional levels, and representatives of PT Chandra Asri Alkali (CAA) regarding the company's Rp15 trillion project, which had been approached by individuals demanding project allocations without a tender process, at the Ministry of Investment and Downstreaming offices in Jakarta on 14 May 2025.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu stated that the Government is committed to ensuring the smooth progress of CAA's investment as one of the key pillars in national industrial downstreaming efforts.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that investment remains conducive and sustainable," he said, as quoted from a BKPM press release on Monday (19 May).
Todotua Pasaribu emphasised that the current situation in Banten must be a concern for all parties and needs to be properly anticipated. The Ministry of Investment and Downstreaming/BKPM, in its capacity as Chair of the Investment Acceleration Task Force, together with government officials and relevant authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
"We regret what happened in Cilegon and that matter will be handed over to law enforcement authorities. In this case, the Banten Provincial Police will proceed with the investigation process and the outcomes fall within the domain of law enforcement. However, going forward we want to establish a deterrent effect against improper actions to safeguard the investment climate in our country," Todotua affirmed.
The Deputy Minister of Investment also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership arrangements. The Ministry of Investment and Downstreaming/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 essentially show that investment involves many factors: firstly economic growth, secondly employment absorption, then upskilling through technology transfer. Most importantly, how there can be improved regional economic empowerment through the empowerment of local entrepreneurs," Todotua explained.
The PT CAA project is included in the National Medium-Term Development Plan (RPJMN) for 2025-2029 as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025. The project is also part of the downstreaming initiatives promoted by the Government through the development of petrochemical downstream products, with potential export value reaching approximately Rp35-40 trillion by 2040.
According to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest contributing investment sectors were Housing, Industrial Estates and Office Buildings (Rp4.8 trillion), Basic Metal Industry, Metal Goods, Non-Machinery and Equipment (Rp4.1 trillion), and Chemical and Pharmaceutical Industry (Rp3.7 trillion).
Banten Governor Andra Soni also affirmed his support for the joint commitment to maintaining a conducive investment climate.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu stated that the Government is committed to ensuring the smooth progress of CAA's investment as one of the key pillars in national industrial downstreaming efforts.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that investment remains conducive and sustainable," he said, as quoted from a BKPM press release on Monday (19 May).
Todotua Pasaribu emphasised that the current situation in Banten must be a concern for all parties and needs to be properly anticipated. The Ministry of Investment and Downstreaming/BKPM, in its capacity as Chair of the Investment Acceleration Task Force, together with government officials and relevant authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
"We regret what happened in Cilegon and that matter will be handed over to law enforcement authorities. In this case, the Banten Provincial Police will proceed with the investigation process and the outcomes fall within the domain of law enforcement. However, going forward we want to establish a deterrent effect against improper actions to safeguard the investment climate in our country," Todotua affirmed.
The Deputy Minister of Investment also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership arrangements. The Ministry of Investment and Downstreaming/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 essentially show that investment involves many factors: firstly economic growth, secondly employment absorption, then upskilling through technology transfer. Most importantly, how there can be improved regional economic empowerment through the empowerment of local entrepreneurs," Todotua explained.
The PT CAA project is included in the National Medium-Term Development Plan (RPJMN) for 2025-2029 as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025. The project is also part of the downstreaming initiatives promoted by the Government through the development of petrochemical downstream products, with potential export value reaching approximately Rp35-40 trillion by 2040.
According to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest contributing investment sectors were Housing, Industrial Estates and Office Buildings (Rp4.8 trillion), Basic Metal Industry, Metal Goods, Non-Machinery and Equipment (Rp4.1 trillion), and Chemical and Pharmaceutical Industry (Rp3.7 trillion).
Banten Governor Andra Soni also affirmed his support for the joint commitment to maintaining a conducive investment climate.