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Rabu, 14 Mei 2025

Ministry of Investment and Downstream Industry Calls to Safeguard Investment Climate

Jakarta, May 14, 2025 – Indonesian government takes proactive steps to maintain a conducive and attractive investment climate. This was demonstrated today (14/05) as the Ministry of Investment and Downstream Industriy/Indonesia Investment Coordinating Board (BKPM) immediately facilitated a meeting between Banten Governor Andra Soni, Banten Police Chief Inspector General Suyudi Ario Seto, representatives from the national and regional Chambers of Commerce (KADIN), and officials from PT Chandra Asri Alkali (CAA) at the ministry’s office in Jakarta. The discussion centered on a IDR15 trillion CAA project that has been disrupted by individuals demanding unauthorized project allocations without due tender process.

Vice Minister of Investment and Downstream Industry/Vice Chairman of BKPM Todotua Pasaribu emphasized the government’s commitment to ensuring smooth investment flows, particularly for CAA, a key player in national industrial downstreaming efforts. “The state must provide guarantees, both domestically and internationally, for investments in our country to keep them conducive and sustainable,” he told reporters.


Todotua stressed that the situation in Banten requires immediate attention and coordinated action. The Ministry of Investment and BKPM, as head of the Investment Acceleration Task Force, along with relevant government agencies, will take swift and concrete steps to secure the project’s implementation.


“We deplore this incident, law enforcement will handle it—in this case, the Banten Police. Going forward, we aim to set a deterrent effect against such misconduct to protect our investment climate,” he asserted. To prevent similar issues, the Vice Minister highlighted the need for stricter oversight of business partnership models. The ministry has already established partnership procedures under Ministerial Regulation No. 1/2022 on Partnerships Between Large Enterprises and Local MSMEs.


“This investment impacts multiple factors: economic growth, job creation, skills development, and technology transfer. Most importantly, it boosts regional economic empowerment through local business involvement,” Todotua added.


The CAA project is part of the 2025-2029 National Mid-Term Development Plan (RPJMN) as a National Strategic Project (PSN) under Presidential Regulation No. 12/2025. It supports the government’s petrochemical downstreaming push, with potential exports reaching IDR35–40 trillion by 2040.


BKPM data shows Banten recorded IDR31.1 trillion in investment in Q1 2025, led by housing/industrial estates (IDR4.8 trillion), base metals (IDR4.1 trillion), and chemical/pharmaceutical industries (IDR3.7 trillion).


Collaboration to Protect Investment Climate

Banten Governor Andra Soni reaffirmed his commitment to maintaining a conducive investment environment. “We’ve reinforced our pledge to support timely, beneficial investments in Banten, especially Cilegon. Together with Cilegon KADIN and Chandra Asri, we’re aligned on achieving 8% economic growth,” he said.


Banten Police Chief Suyudi pledged a thorough investigation: “As part of the regional investment task force, we’ll deploy a team to probe potential criminal acts disrupting investment. Legal action will follow if violations are found.”

CAA’s Director of Legal, External Relations, and Circular Economy Edi Rivai expressed gratitute to the government for its support, reaffirming the company’s compliance with regulations. KADIN’s Vice Chairman for Law and Human Rights Azis Syamsuddin also vowed to uphold proper partnership mechanisms per the ministry’s guidance.


For further inquiries, contact:

Protocol and Public Relations Bureau

Ministry of Investment and Downstream Industry/BKPM

Email: humas@bkpm.go.id

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