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Cilegon Kadin chair named suspect in Rp5tn extortion of foreign investor

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Tempo - May 17, 2025

Antara, Jakarta - The Chairperson of the Cilegon Chamber of Commerce and Industry (Kadin), MS, and two others have been named suspects by the Banten Regional Police's General Crimes Directorate for allegedly extorting a foreign investor for Rp5 trillion.

The three individuals face charges of incitement, extortion, and coercion against PT China Chengda Engineering. The suspects were formally identified following a crime conference held on Friday night, May 16, 2025.

The suspects are identified as MS, Chairman of the Kadin Cilegon; IA, Deputy Chair of Kadin for the Industry sector; and RJ, Chair of the Indonesia Fishermen Association (HNSI) of Cilegon.

"They have been proven to have played an active role in pressuring the company to award projects to their organizations without a bidding process," said Sr. Comr. Dian Setyawan, Director of General Crimes for the Banten Regional Police, in Serang, Banten.

Each of the three suspects faces different charges based on their respective roles in the alleged Rp5 trillion project extortion.

Investigations reveal that IA slammed a table and pressured PT Chengda to award a project to Kadin Cilegon. This incident occurred alongside MS during meetings with representatives of PT Total, one of the project contractors, on April 14 and 22, 2025. IA is charged under Articles 368 and 335 of the Criminal Code.

Meanwhile, RJ is reported to have threatened to halt the project if HNSI was not involved. He is charged under Article 335 of the Criminal Code.

In addition to his involvement in the project's coercion, MS is also suspected of mobilizing crowds to demonstrate at the PT Chengda project site. He faces charges under Articles 160 and 368 of the Criminal Code.

The case came to light after a video went viral on social media showing the Chair of Kadin Cilegon demanding a Rp5 trillion project share.

Police promptly initiated an investigation, conducting clarifications and interviewing 14 witnesses from the company, various organizations, and the police force.

Several pieces of evidence have been confiscated, including video recordings from the @faktabanten and @kabarbanten Instagram accounts, screenshots of calls for action, and official documents such as correspondence and meeting minutes between Kadin and PT Chengda.

The Banten Regional Police affirmed that the legal process against the three suspects will be conducted professionally and transparently. "There is no room for intimidation and coercion in investments and strategic projects in Banten," Dian emphasized.

The case has drawn public attention due to the alleged unethical practices involving regional business organizations against a foreign investor.

Source: https://en.tempo.co/read/2008130/cilegon-kadin-chair-named-suspect-in-rp5tn-extortion-of-foreign-investo

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