Kadin Indonesia Forms Verification and Ethics Team, Responding to Viral Video of Chandra Asri Group Project in Cilegon
Main Takeaways
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JAKARTA, Investortrust.id – Anindya Bakrie, Chairman of the Indonesian Chamber of Commerce and Industry, or Kadin, has responded to the viral video involving an individual allegedly soliciting a project tender from foreign investors for Chandra Asri Group in Cilegon, Banten. The project in question, which has an estimated value of Rp 15 trillion, has raised significant public concern.
“Essentially, we at Kadin Indonesia are forming and have already begun a verification and ethics team to address public complaints and inquiries regarding Cilegon,” Anindya said during a press conference in Jakarta on Tuesday, May 13, 2025.
He emphasized Kadin’s commitment to enhancing trade and investment in Indonesia and ensuring legal certainty for all parties involved. “We are committed to ensuring that there are no unlawful or repressive actions,” he added. “We aim to act swiftly.”
Anindya also confirmed that he would meet with representatives from the Governor of Banten, the Ministry of Investment and the Indonesian Investment Coordinating Board (BKPM), as well as law enforcement, on Wednesday, May 14, 2025. He pledged that Kadin would work alongside all relevant stakeholders to closely monitor the situation.
When asked whether Kadin would revoke the membership of the regional representative involved in the matter, Anindya remained cautious, stating that such actions would depend on further investigation. “This case involves an individual, and it’s a matter at the local level. We will collaborate with the provincial authorities,” he remarked.
He also expressed concern that such incidents could deter investors from coming to Indonesia, particularly given his personal efforts to attract foreign investment.
“We must approach this situation wisely. We do not wish to see such issues on social media. We prefer direct engagement. However, our stance is clear: we are pro-business, pro-jobs, and pro-national empowerment,” Anindya stated.
As part of Kadin’s ongoing investigation, Anindya confirmed that an internal audit of Kadin’s structure and activities in Cilegon and Banten would be conducted. The results of the audit will be shared with the Ministry of Investment and BKPM, as well as the Provincial Government of Banten, as an official clarification.
National Strategic Project
Despite requests for a comment, Chandra Asri Group declined to provide a formal statement to Investortrust.id.
The company is currently building a world-scale chlor-alkali-ethylene dichloride (CA-EDC) plant in Cilegon, Banten, which is expected to generate 3,000 jobs during the construction phase and 250 jobs when fully operational.
The Rp 15 trillion project will be managed by Chandra Asri’s subsidiary, PT Chandra Asri Alkali (CAA), with a target completion date of 2027. The Indonesian government has designated the CA-EDC plant as a National Strategic Project (PSN), recognizing its potential to contribute to sustainable economic growth.
“Investing in the CA-EDC plant is backed by our 32-year track record as a key player in Indonesia’s petrochemical industry. We are committed to generating value for all stakeholders and contributing to Indonesia’s economic growth through our leadership in the industry,” said Erwin Ciputra, President Director and CEO of Chandra Asri Group, in a media statement.
Once operational, the CA-EDC plant is expected to produce 400,000 tons of caustic soda per year (or 827,000 tons in liquid form) and 500,000 tons of ethylene dichloride annually. The plant will significantly reduce Indonesia’s reliance on imports of chlor-alkali products, saving the country up to Rp 4.9 trillion annually, while all produced EDC will be exported, potentially adding Rp 5 trillion to Indonesia’s foreign exchange reserves.
Meanwhile, Shinta Kamdani, Chairman of the Indonesian Employers Association (Apindo), expressed support for a thorough investigation into the actions at the CAG plant. "We believe this incident in Cilegon needs further investigation to understand the full context," she said during a press conference at Apindo’s Jakarta office on Tuesday, May 13, 2025.
Shinta highlighted that such incidents, particularly those involving acts of extortion, are causing concern among business operators, particularly in labor-intensive industries. "Security is critical to fostering a conducive business environment. We hope the government takes necessary measures to address these issues," she added.
This issue, as Anindya Bakrie pointed out, highlights the need for swift, decisive action to preserve investor confidence and ensure that business operations can continue without disruptions from unlawful actions.
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