State Must Guarantee Conducive and Sustainable Investment Climate, Says Investment Ministry
Jakarta (ANTARA) - The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has stated its commitment to ensuring the smooth progress of PT Chandra Asri Alkali's (CAA) investment in Cilegon, Banten, as a key pillar in the national industrial downstream effort.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," said Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu in a statement in Jakarta on Thursday.
He said the government continues to take proactive steps to maintain a conducive and attractive investment climate for investors. This was demonstrated by the ministry's facilitation of 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 national and regional levels, and representatives of PT Chandra Asri Alkali at the Ministry of Investment and Downstream Industries office in Jakarta on 14 May, regarding the Rp15 trillion PT CAA project which had previously been approached by individuals demanding project allocations without a tender process.
Todotua stated that what occurred at the Chandra Asri project must be a concern for all parties and needs to be properly anticipated. "We regret what happened in Cilegon and that matter will be handed over to law enforcement. In this case, the Banten Provincial Police will carry out the investigation process and whatever the results, that falls within the domain of law enforcement. However, going forward we want to provide a deterrent effect against improper actions to safeguard the investment climate in our country," said Todotua.
The Deputy Minister also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership arrangements. The ministry 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 are essentially that investment 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," said Todotua.
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 downstream industrialisation drive 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 Downstream Industries/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest investment-contributing sectors were housing, industrial estates and offices at Rp4.8 trillion, basic metals, metal goods excluding machinery and equipment at Rp4.1 trillion, and chemicals and pharmaceuticals at Rp3.7 trillion.
Meanwhile, Banten Governor Andra Soni affirmed his support for the joint commitment to maintaining a conducive investment climate in order to achieve economic growth above 8 per cent.
Furthermore, Banten Regional Police Chief Inspector General Suyudi Ario Seto stated that he would follow up the case through investigation and inquiry to ensure legal certainty. "We at the Banten Regional Police will certainly deploy a team and conduct an investigation. And if there are suspected criminal acts, especially those that disrupt the investment climate in this country, we will certainly carry out investigation and inquiry proceedings and process them legally," said Suyudi.
Previously on Friday, 9 May 2025, an incident occurred in Cilegon involving a number of individuals claiming to be members of the Cilegon City KADIN. The group carried out demonstrative and intimidatory actions targeting the management of PT Chengda, the main contractor working for PT Chandra Asri Alkali (CAA), a company operating in the petrochemical sector with investments in the Cilegon area.
"The state must provide guarantees, both domestically and internationally, for investments in our country, so that the investment climate remains conducive and sustainable," said Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu in a statement in Jakarta on Thursday.
He said the government continues to take proactive steps to maintain a conducive and attractive investment climate for investors. This was demonstrated by the ministry's facilitation of 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 national and regional levels, and representatives of PT Chandra Asri Alkali at the Ministry of Investment and Downstream Industries office in Jakarta on 14 May, regarding the Rp15 trillion PT CAA project which had previously been approached by individuals demanding project allocations without a tender process.
Todotua stated that what occurred at the Chandra Asri project must be a concern for all parties and needs to be properly anticipated. "We regret what happened in Cilegon and that matter will be handed over to law enforcement. In this case, the Banten Provincial Police will carry out the investigation process and whatever the results, that falls within the domain of law enforcement. However, going forward we want to provide a deterrent effect against improper actions to safeguard the investment climate in our country," said Todotua.
The Deputy Minister also conveyed that to prevent similar incidents in Banten, there needs to be strengthened oversight of business partnership arrangements. The ministry 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 are essentially that investment 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," said Todotua.
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 downstream industrialisation drive 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 Downstream Industries/BKPM, investment realisation in the first quarter of 2025 in Banten Province reached Rp31.1 trillion. The three highest investment-contributing sectors were housing, industrial estates and offices at Rp4.8 trillion, basic metals, metal goods excluding machinery and equipment at Rp4.1 trillion, and chemicals and pharmaceuticals at Rp3.7 trillion.
Meanwhile, Banten Governor Andra Soni affirmed his support for the joint commitment to maintaining a conducive investment climate in order to achieve economic growth above 8 per cent.
Furthermore, Banten Regional Police Chief Inspector General Suyudi Ario Seto stated that he would follow up the case through investigation and inquiry to ensure legal certainty. "We at the Banten Regional Police will certainly deploy a team and conduct an investigation. And if there are suspected criminal acts, especially those that disrupt the investment climate in this country, we will certainly carry out investigation and inquiry proceedings and process them legally," said Suyudi.
Previously on Friday, 9 May 2025, an incident occurred in Cilegon involving a number of individuals claiming to be members of the Cilegon City KADIN. The group carried out demonstrative and intimidatory actions targeting the management of PT Chengda, the main contractor working for PT Chandra Asri Alkali (CAA), a company operating in the petrochemical sector with investments in the Cilegon area.