Alfi Dinilhaq, Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) has suspended three of its members following allegations of intimidation and extortion against a Chinese engineering firm involved in a major national project in Cilegon, Banten.
The individuals – identified as senior figures within Kadin Cilegon – allegedly attempted to extort China Chengda Engineering Co., the main contractor for Chandra Asri Alkali (CAA), a subsidiary of publicly listed Chandra Asri Pacific, which is owned by one of Indonesia's richest individuals, Prajogo Pangestu.
"We regret the actions taken by members of Kadin Cilegon and support the legal steps taken by the Banten Police," Kadin Chairman Anindya Novyan Bakrie said on Saturday.
Anindya said Kadin Indonesia respects the ongoing legal process. The three members have been suspended until a final court ruling is made.
The incident reportedly occurred on May 9, when the three officials visited Chengda's office to press for a promised business collaboration. However, the encounter escalated into what authorities deemed an act of intimidation against the foreign investor.
"This has caused unnecessary turmoil," Anindya said. "Kadin regrets the disruption that has emerged as a result of this case."
On the evening of May 16, the Banten Police named the three individuals as criminal suspects. They include MS, the Chairman of Kadin Cilegon; IA, the Vice Chair for Industry; and RZ, the Head of the local chapter of the Indonesian Fishermen's Association (HNSI).
The suspects are accused of demanding a share in the Chlor Alkali-Ethylene Dichloride (CA-EDC) factory construction project being undertaken by CAA, which is part of Indonesia's National Strategic Projects (PSN) with a total investment of Rp 15 trillion (approximately $950 million).
Kadin said that such conduct violates the principles of ethical business and could damage investor confidence at a time when the country is seeking to attract more foreign investment.