Police Probe Alleged $300 Million Extortion in 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 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:Related Articles
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.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.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.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 sectorBusinesses 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.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
Indonesia Sets August CPO Reference Price at $996.52 per Ton
Indonesia lowered its August CPO reference price to $996.52 per ton, reducing the export duty on palm oil shipments.Five Dead, 227 Rescued After Ferry Fire Off Madura
At least 227 people have been rescued and five have died after a ferry caught fire off Madura, rescuers say.AI’s Thirst for Water to Soar 129%, UN Warns
As many as 40% of the data centers in the world are in high-water stress areas, UN envoy Retno Marsudi says.Philippines Eyes ASEAN Halal Standards
The Philippines is eyeing a halal recognition deal with Indonesia as it seeks regional standards for Sharia-compliant goods.Ferry Carrying 250 People Catches Fire Off Madura, Rescue Underway
A rescue operation is underway after a ferry carrying about 250 people caught fire off Madura, East Java.Most Popular
