President Prabowo Intervenes in Alleged Extortion of Chemical Plant Project in Cilegon
JAKARTA — President Prabowo Subianto has turned his attention to an alleged extortion case involving rogue businesspeople in Cilegon, Banten, who targeted those responsible for the construction of a chlor alkali-ethylene dichloride (CA-EDC) chemical plant.
The President ordered the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) to summon all parties involved in the incident to find a resolution.
On Wednesday (14 May 2025), Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu convened a meeting at his office with Banten Governor Andra Soni, Cilegon Mayor Robinsar, Banten Regional Police Chief Inspector General Suyudi Ario Seto, Director of Legal, External Relations and Circular Economy at Chandra Asri Group Edi Rivai, and Deputy General Coordinator for Law and Human Rights at the Indonesian Chamber of Commerce and Industry (Kadin) Azis Syamsuddin to discuss the matter, which had gone viral on social media.
"This meeting was indeed initiated by the Ministry of Investment and Downstreaming because we received instructions from the President and the Minister (Rosan Roeslani), who is also currently abroad, to facilitate a response to the incident that occurred in the Cilegon area involving Chandra Asri Group's investment and one of the Kadin organisations, in this case Kadin Cilegon," Todotua said after the meeting at the Ministry of Investment office in Jakarta.
The construction of the PT Chandra Asri Alkali plant has been designated by the government as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025 concerning the National Medium-Term Development Plan (RPJMN) 2025-2029. The PSN designation was signed by Prabowo on 10 February 2025. The regulation states that the PSN executor is a private company, namely the Chandra Asri Group.
Todotua stated that the government regrets the alleged extortion and has asked the Banten Regional Police to investigate conditions on the ground further. He also affirmed that legal proceedings would be pursued against the rogue businesspeople if they are found to have committed criminal acts.
"This is to provide a deterrent effect going forward, particularly with regard to the investment climate in our country," he stressed.
The alleged extortion in Cilegon went viral after a video surfaced on social media showing a number of businesspeople in Cilegon, Banten, demanding a share of the project without going through a tender process. The local businesspeople were reportedly demanding projects worth Rp 5 trillion from PT Chandra Asri Alkali (CAA), a subsidiary of Indonesia's largest chemical company, PT Chandra Asri Petrochemical Tbk.
The uploaded video showed several men identifying themselves as representatives of the Cilegon Chamber of Commerce and Industry (Kadin) in a confrontation with Chengda Engineering (CEE), a Chinese construction contractor appointed by CAA. The local businesspeople were seen pressing for a portion of the major project in the area to be awarded directly to them without going through an official bidding process.
In the video, they were seen arriving en masse at the Krakatau Steel industrial complex in Cilegon wearing white uniforms and construction helmets. The project work they demanded was the construction of the chlor alkali-ethylene dichloride chemical plant.
The CA-EDC plant in Cilegon is listed among the national strategic projects (PSN) of President Prabowo Subianto's administration under Presidential Regulation Number 12 of 2025 concerning the RPJMN 2025-2029.
The President ordered the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) to summon all parties involved in the incident to find a resolution.
On Wednesday (14 May 2025), Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu convened a meeting at his office with Banten Governor Andra Soni, Cilegon Mayor Robinsar, Banten Regional Police Chief Inspector General Suyudi Ario Seto, Director of Legal, External Relations and Circular Economy at Chandra Asri Group Edi Rivai, and Deputy General Coordinator for Law and Human Rights at the Indonesian Chamber of Commerce and Industry (Kadin) Azis Syamsuddin to discuss the matter, which had gone viral on social media.
"This meeting was indeed initiated by the Ministry of Investment and Downstreaming because we received instructions from the President and the Minister (Rosan Roeslani), who is also currently abroad, to facilitate a response to the incident that occurred in the Cilegon area involving Chandra Asri Group's investment and one of the Kadin organisations, in this case Kadin Cilegon," Todotua said after the meeting at the Ministry of Investment office in Jakarta.
The construction of the PT Chandra Asri Alkali plant has been designated by the government as a National Strategic Project (PSN) under Presidential Regulation Number 12 of 2025 concerning the National Medium-Term Development Plan (RPJMN) 2025-2029. The PSN designation was signed by Prabowo on 10 February 2025. The regulation states that the PSN executor is a private company, namely the Chandra Asri Group.
Todotua stated that the government regrets the alleged extortion and has asked the Banten Regional Police to investigate conditions on the ground further. He also affirmed that legal proceedings would be pursued against the rogue businesspeople if they are found to have committed criminal acts.
"This is to provide a deterrent effect going forward, particularly with regard to the investment climate in our country," he stressed.
The alleged extortion in Cilegon went viral after a video surfaced on social media showing a number of businesspeople in Cilegon, Banten, demanding a share of the project without going through a tender process. The local businesspeople were reportedly demanding projects worth Rp 5 trillion from PT Chandra Asri Alkali (CAA), a subsidiary of Indonesia's largest chemical company, PT Chandra Asri Petrochemical Tbk.
The uploaded video showed several men identifying themselves as representatives of the Cilegon Chamber of Commerce and Industry (Kadin) in a confrontation with Chengda Engineering (CEE), a Chinese construction contractor appointed by CAA. The local businesspeople were seen pressing for a portion of the major project in the area to be awarded directly to them without going through an official bidding process.
In the video, they were seen arriving en masse at the Krakatau Steel industrial complex in Cilegon wearing white uniforms and construction helmets. The project work they demanded was the construction of the chlor alkali-ethylene dichloride chemical plant.
The CA-EDC plant in Cilegon is listed among the national strategic projects (PSN) of President Prabowo Subianto's administration under Presidential Regulation Number 12 of 2025 concerning the RPJMN 2025-2029.