good crabdouble-skinned crabsVietnamese crab exporterexellent crab

Police Probe Alleged $300 Million Extortion in Cilegon Petrochemical Project

Ibnu Malikh
May 14, 2025 | 3:37 pm
SHARE
Individuals claiming to represent Kadin Cilegon appear to pressure Chinese contractor Chengda Engineering in a viral video related to the Chandra Asri Alkali project. (Beritasatui.com/Ibnu Malikh)
Individuals claiming to represent Kadin Cilegon appear to pressure Chinese contractor Chengda Engineering in a viral video related to the Chandra Asri Alkali project. (Beritasatui.com/Ibnu Malikh)

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.

ADVERTISEMENT

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 organization 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 tons of solid caustic soda and 500,000 tons 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.

Tags: Keywords:
SHARE

Related Articles


Business Jul 31, 2026 | 6:56 pm

Prabowo Urges Business Leaders to Unite as Kadin Seeks Faster Growth

Prabowo urges Indonesia’s business leaders to unite as Kadin pushes for 8% growth and stronger economic resilience.
Business May 22, 2026 | 8:11 pm

Kadin Warns Weak Rupiah is Squeezing Middle-Class Consumers

Indonesia’s middle class faces mounting pressure as the rupiah weakens past Rp 17,700 per dollar.
Business May 18, 2026 | 4:29 pm

Chamber of Commerce Says Rupiah at Rp 17,000 Is ‘Full Warning Alarm’

Indonesian businesses warn prolonged rupiah weakness could trigger layoffs as import and logistics costs continue rising.
Business Apr 4, 2026 | 11:13 am

Iran-US Escalation Sends Freight Rates Soaring, Threatens Indonesia’s Trade

Iran-US tensions disrupt shipping lanes, tripling freight costs and raising risks for Indonesia’s trade, inflation and manufacturing sector
Business Mar 23, 2026 | 12:42 pm

Businesses See Downside to Indonesia’s WFH Plan to Tackle Oil Shock

Businesses warn Indonesia’s WFH plan to cut fuel use may curb consumption and slow growth as oil prices surge past $100 per barrel.
Special Updates Feb 20, 2026 | 12:41 pm

Chandra Asri’s CA-EDC Plant Reaches 50% Completion

The plant, run by its subsidiary Chandra Asri Alkali, has entered the peak production phase.

The Latest


News 10 hours ago

Prabowo Says South Korea's Lee Asked Indonesia to Help Open Dialogue With North Korea

President Prabowo Subianto says South Korea's Lee Jae Myung asked Indonesia to help open dialogue with North Korea.
News 15 hours ago

Pullman Hotel Fire in Jakarta Suspected to Stem From Electrical Fault

Police will deploy a forensic team to investigate a fire at Pullman Hotel in West Jakarta, with an electrical fault suspected as the cause.
Business 16 hours ago

Pertamina Slashes Prices of Three Fuels From Aug. 1

Pertamina cut prices for three non-subsidized fuels from Aug. 1.
News 17 hours ago

Trump Too Stubborn to Rejoin Paris Agreement: Indonesian Minister

Indonesia's Environment Minister Jumhur Hidayat says other countries should deal with Trump quitting the Paris Accord.
Business 19 hours ago

Indofood Sales Rise 9% as Rupiah Weakness Hits First-Half Profit

Indofood’s first-half sales rose 9%, but net profit fell 19% as rupiah weakness increased unrealized foreign-exchange losses.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED