JAKARTA – PT Chandra Asri Pasifik Tbk (TPIA) has confirmed that the contractor of the Chlor Alkali–Ethylene Dichloride (CA-EDC) plant owned by its subsidiary, PT Chandra Asri Alkali, was approached by parties demanding a “cut” from the investment project.

In an official statement, TPIA disclosed that China Chengda Engineering Co Ltd, the contractor for the CA-EDC plant in Cilegon, was visited by “representatives claiming to be local entrepreneurs”.

“They sought to obtain work from Chengda related to the PT Chandra Asri Alkali project,” said Erri Dewi Riani, General Manager of Legal & Corporate Secretary at TPIA, in the statement submitted to the Indonesia Stock Exchange on Thursday (15/5).

As reported by CNN Indonesia, individuals claiming affiliation with the Cilegon Chamber of Commerce (Kadin Cilegon) demanded a project share worth IDR 5 trillion without going through any tender process.

TPIA stated that participation in the project without a tender process could raise concerns about plant standards and the company’s adherence to good corporate governance principles.

“This incident could potentially disrupt the pre-established construction schedule,” Erri added.

In response, TPIA requested clarification from Chengda on 13 May. On 14 May, the company also attended a Meeting for the Facilitation of Investment Dispute Resolution, facilitated by the Investment Coordinating Board (BKPM).

The meeting was attended by the Deputy Head of BKPM, the Banten Regional Police Chief, the Governor of Banten, the Cilegon Police Chief, the Mayor of Cilegon, as well as representatives from the national, provincial, and Cilegon branches of the Chamber of Commerce and Industry.

According to Bisnis Indonesia, Todotua Pasaribu, Deputy Head of BKPM, condemned such damaging actions, which he said are increasingly common among groups and community organisations.

“For several months now, we’ve been hearing more and more about these disruptive actions, carried out by community groups or other organisations, which are troubling and detrimental to the investment climate,” he said.

Todotua also stressed the need for the central government to take a firmer stance moving forward.

TPIA’s CA-EDC plant—valued at IDR 15 trillion—has been designated a National Strategic Project (PSN) under the administration of President Prabowo (2025–2029), projected for completion in 2027. (ZH)