Ministry of Investment Urges All Parties to Safeguard Investment Climate
Jakarta: The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has spoken out regarding extortion by individuals demanding Rp5 trillion in untendered project allocations from PT Chandra Asri Alkali (CAA). The Ministry of Investment facilitated a meeting between several parties to discuss the matter.
During the meeting between regional government officials, the Indonesian Chamber of Commerce and Industry (Kadin), and CAA representatives, Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said 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 the investment climate remains conducive and sustainable," he said, as quoted on Thursday, 15 May 2025.
Todotua Pasaribu stressed that the events in Banten must be a concern for all parties and need to be properly anticipated. The Ministry of Investment and Downstreaming/BKPM, together with government officials and relevant authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
"In this case, the Banten Provincial Police will carry out the investigation process, and the outcome falls within the domain of law enforcement. However, going forward, we want to create a deterrent effect against improper actions to safeguard the investment climate in our country," Todotua affirmed.
He 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.
"The essence is that investment actually involves many factors — firstly economic growth, secondly labour 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 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 among the downstreaming projects being promoted by the government, with potential export value reaching approximately Rp35 trillion to Rp40 trillion by 2040.
During the meeting between regional government officials, the Indonesian Chamber of Commerce and Industry (Kadin), and CAA representatives, Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said 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 the investment climate remains conducive and sustainable," he said, as quoted on Thursday, 15 May 2025.
Todotua Pasaribu stressed that the events in Banten must be a concern for all parties and need to be properly anticipated. The Ministry of Investment and Downstreaming/BKPM, together with government officials and relevant authorities, will take swift and concrete steps to ensure the smooth implementation of investment projects.
"In this case, the Banten Provincial Police will carry out the investigation process, and the outcome falls within the domain of law enforcement. However, going forward, we want to create a deterrent effect against improper actions to safeguard the investment climate in our country," Todotua affirmed.
He 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.
"The essence is that investment actually involves many factors — firstly economic growth, secondly labour 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 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 among the downstreaming projects being promoted by the government, with potential export value reaching approximately Rp35 trillion to Rp40 trillion by 2040.