Police Probe Alleged Rp 5 Trillion Extortion of Chinese Contractor at Cilegon Petrochemical Project
Cilegon, Banten. Police have launched a probe into alleged extortion by local business actors in Cilegon, Banten, after a viral video surfaced showing individuals demanding Rp 5 trillion ($300 million) from Chinese contractor Chengda Engineering, which is building Barito Pacific Group's Chandra Asri Alkali (CAA) petrochemical project.
The individuals, claiming to represent the local branch of the Indonesian Chamber of Commerce and Industry (Kadin), were seen in the video appearing to pressure the foreign firm to involve them in the government-designated National Strategic Project.
Cilegon Police Chief Kemas Indra Natanegara said law enforcement had already mediated a meeting between the parties. "We are committed to cracking down on thuggery in Cilegon. This appears to be a misunderstanding between local and foreign business players," he said on Thursday.
Kadin Indonesia has also pledged to investigate the incident thoroughly and implement reforms to prevent the misuse of its name for coercion. Kadin Chairman Anindya Bakrie said the organisation would dispatch a team to Cilegon alongside Banten Governor Andra Soni, officials from the Investment Coordinating Board (BKPM), and law enforcement agencies. "We will take objective, coordinated steps on the ground," Anindya stated.
The CAA project, which has been granted National Strategic Project (PSN) status by the Indonesian government, involves a Rp 15 trillion investment to build a chlor-alkali and ethylene dichloride (CA-EDC) plant in Cilegon. Once completed in 2027, the facility is expected to produce 400,000 tonnes of solid caustic soda and 500,000 tonnes of ethylene dichloride annually.
The Indonesian Industrial Estate Association (HKI) estimates the country has lost hundreds of trillions of rupiah in potential investments due to instability caused by thugs posing as civic groups. They frequently disrupt industrial operations by staging protests, blocking access, and seeking control over key business activities such as transportation, catering, and procurement.
The individuals, claiming to represent the local branch of the Indonesian Chamber of Commerce and Industry (Kadin), were seen in the video appearing to pressure the foreign firm to involve them in the government-designated National Strategic Project.
Cilegon Police Chief Kemas Indra Natanegara said law enforcement had already mediated a meeting between the parties. "We are committed to cracking down on thuggery in Cilegon. This appears to be a misunderstanding between local and foreign business players," he said on Thursday.
Kadin Indonesia has also pledged to investigate the incident thoroughly and implement reforms to prevent the misuse of its name for coercion. Kadin Chairman Anindya Bakrie said the organisation would dispatch a team to Cilegon alongside Banten Governor Andra Soni, officials from the Investment Coordinating Board (BKPM), and law enforcement agencies. "We will take objective, coordinated steps on the ground," Anindya stated.
The CAA project, which has been granted National Strategic Project (PSN) status by the Indonesian government, involves a Rp 15 trillion investment to build a chlor-alkali and ethylene dichloride (CA-EDC) plant in Cilegon. Once completed in 2027, the facility is expected to produce 400,000 tonnes of solid caustic soda and 500,000 tonnes of ethylene dichloride annually.
The Indonesian Industrial Estate Association (HKI) estimates the country has lost hundreds of trillions of rupiah in potential investments due to instability caused by thugs posing as civic groups. They frequently disrupt industrial operations by staging protests, blocking access, and seeking control over key business activities such as transportation, catering, and procurement.