Investment Ministry to Intervene in Extortion Case Targeting Chandra Asri Pacific
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) will intervene in an extortion case targeting PT Chandra Asri Pacific Tbk (TPIA).
A video lasting approximately 30 seconds circulated on social media on Monday (12/05), showing a group of individuals arriving at a factory belonging to Chandra Asri's subsidiary, PT Chandra Asri Alkali (CAA), which operates the Chlor Alkali and Ethylene Dichloride (CA-EDC) plant.
In the video, a man dressed in white wearing a construction helmet, claiming to be a member of the Indonesian Chamber of Commerce and Industry (Kadin), demanded a share of the CA-EDC plant project.
"Without any tender, without any tender, the allocation must be clear, without any tender. Rp 5 trillion for Kadin, Rp 3 trillion for Kadin. Without any tender, done," the man stated.
At the same time, another man in white with a shaved head reinforced his colleague's demands in English: "Directly to us, a job, about how much percent, around, this project CA-EDC, how much percent? We want to hear about sharing, how much percentage."
Regarding the incident, Deputy for Investment Implementation Control at the Ministry of Investment and Downstreaming/BKPM, Edy Junaidi, confirmed that Chandra Asri had reported the incident.
"They have already reported it to BKPM," Edy said when contacted by Kontan on Tuesday (13/05).
He added that on Wednesday (14/05), BKPM would hold a meeting regarding follow-up actions. "There will be a meeting tomorrow along with a press conference tomorrow afternoon," he said.
For this project, Chandra Asri Group has allocated capital expenditure of approximately US$350 million to US$400 million this year, equivalent to Rp 5.5 trillion to Rp 6.3 trillion. The world-scale project has a total investment value of Rp 15 trillion.
This investment represents one of Chandra Asri Group's strategic moves to strengthen the national chemical industry structure whilst accelerating the reduction of dependence on imported raw materials.
The CA-EDC plant is targeted for completion in 2027 and will have a production capacity of 400,000 tonnes of solid caustic soda per year, equivalent to 827,000 tonnes in liquid form, and 500,000 tonnes of Ethylene Dichloride (EDC) per year.
A video lasting approximately 30 seconds circulated on social media on Monday (12/05), showing a group of individuals arriving at a factory belonging to Chandra Asri's subsidiary, PT Chandra Asri Alkali (CAA), which operates the Chlor Alkali and Ethylene Dichloride (CA-EDC) plant.
In the video, a man dressed in white wearing a construction helmet, claiming to be a member of the Indonesian Chamber of Commerce and Industry (Kadin), demanded a share of the CA-EDC plant project.
"Without any tender, without any tender, the allocation must be clear, without any tender. Rp 5 trillion for Kadin, Rp 3 trillion for Kadin. Without any tender, done," the man stated.
At the same time, another man in white with a shaved head reinforced his colleague's demands in English: "Directly to us, a job, about how much percent, around, this project CA-EDC, how much percent? We want to hear about sharing, how much percentage."
Regarding the incident, Deputy for Investment Implementation Control at the Ministry of Investment and Downstreaming/BKPM, Edy Junaidi, confirmed that Chandra Asri had reported the incident.
"They have already reported it to BKPM," Edy said when contacted by Kontan on Tuesday (13/05).
He added that on Wednesday (14/05), BKPM would hold a meeting regarding follow-up actions. "There will be a meeting tomorrow along with a press conference tomorrow afternoon," he said.
For this project, Chandra Asri Group has allocated capital expenditure of approximately US$350 million to US$400 million this year, equivalent to Rp 5.5 trillion to Rp 6.3 trillion. The world-scale project has a total investment value of Rp 15 trillion.
This investment represents one of Chandra Asri Group's strategic moves to strengthen the national chemical industry structure whilst accelerating the reduction of dependence on imported raw materials.
The CA-EDC plant is targeted for completion in 2027 and will have a production capacity of 400,000 tonnes of solid caustic soda per year, equivalent to 827,000 tonnes in liquid form, and 500,000 tonnes of Ethylene Dichloride (EDC) per year.