Kadin Suspends Three Banten Members Over Alleged Extortion
Jakarta, Indonesianpost.com – The Indonesian Chamber of Commerce and Industry (Kadin) has suspended three of its members in Cilegon, Banten, following allegations of intimidation and extortion against Chinese investors involved in a major industrial project.
“We deeply regret the actions of Kadin Cilegon officials and support the legal measures taken by the Banten Regional Police,” Kadin Indonesia Chairperson Anindya Novyan Bakrie said in a statement on Saturday.
Kadin affirmed its commitment to uphold the legal process while respecting the presumption of innocence, and said the suspension will remain in place until a final court verdict is issued.
The incident in question occurred on May 9, 2025, when the three members allegedly visited the office of PT China Chengda Engineering — the main contractor for PT Chandra Asri Alkali’s chlor alkali-ethylene dichloride (CA-EDC) plant in Cilegon — to discuss an earlier commitment. During the meeting, the Kadin members reportedly used intimidation tactics and made extortion demands.
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“We regret this incident as it has caused unnecessary turmoil and potentially harmed investor confidence,” Bakrie added.
The Banten police have officially named the three individuals as suspects. They include MS, Chairperson of Kadin Cilegon; IA, Deputy Chairperson for Industry; and RZ, Chairperson of the Indonesian Fishermen’s Association (HNSI) in Cilegon.
Authorities allege the suspects demanded to be involved in the Rp15 trillion (approx. US$909.7 million) CA-EDC plant project, which is categorized as a National Strategic Project and owned by PT Chandra Asri Alkali, a subsidiary of PT Chandra Asri Pacific Tbk.
Kadin stated it will continue to support the ongoing investigation and emphasized the importance of ethical conduct among its members to maintain a conducive investment climate in Indonesia. (BL/Antara)