The Indonesian Chamber of Commerce and Industry (Kadin) has launched an internal ethics investigation following allegations that one of its members improperly demanded a share of a major chemical industry project in Cilegon, Banten.

The incident came to light after a video circulated widely on social media, demonstrating an individual claiming to represent Kadin Cilegon allegedly requesting a portion of the project from representatives of Chengda Engineering Co, a Chinese firm serving as the contractor.

The project in question is being developed by PT Chandra Asri Alkali (CAA), a subsidiary of PT Chandra Asri Pacific (TPIA), a leading chemical solutions and infrastructure company in Indonesia and backed by Indonesia’s richest man, Prajogo Pangestu. Valued at Rp15 trillion (US$950 million), the facility is expected to become a world-class chemical production site, with completion targeted for 2027.

Kadin chairman Anindya Bakrie has announced the establishment of a special verification and ethics team to evaluate the incident.

"Such actions could disrupt investment activities and must be clarified," Anindya said as quoted in a statement on Tuesday, May 13, 2025.

To address the issue, Kadin is undertaking a comprehensive four-step plan:

• Internal Review and Ethics Audit: A dedicated team will assess the organizational structure, conduct, and roles of Kadin Cilegon and its affiliates;
• Institutional Sanctions: If violations are confirmed, Kadin may impose disciplinary measures ranging from written warnings to temporary suspension of authority. In severe cases, it may recommend revoking leadership mandates;
• Official Reporting: A formal report will be submitted to the Investment Coordinating Board (BKPM) and local authorities, outlining Kadin’s corrective actions and its stance on upholding legal certainty for investors;
• Operational Guidelines Development: Kadin plans to establish new Standard Operating Procedures (SOPs) for regional involvement in strategic investment projects. These will include ethical guidelines for engagement with investors and contractors, aimed at preventing similar incidents in the future.

Kadin also intends to conduct an internal audit of its Cilegon and Banten branches. The findings will be submitted to BKPM and the provincial government as part of the official clarification process.

Moreover, Kadin Cilegon has received a summons from BKPM to attend a mediation meeting regarding the investment issue.

“We appreciate this move. However, for a thorough resolution, a full internal audit is essential,” Anindya said.

Integrity

Anindya emphasized Kadin's commitment to protecting investors and maintaining Indonesia’s investment climate.

“We firmly reject any form of coercion, intimidation, or unprocedural approaches that compromise legal certainty and the continuity of investment,” he said.

“Any deviation from these principles will be dealt with firmly, within the framework of our organizational bylaws and national law,” Anindya concluded.

About CAA project

PT Chandra Asri Alkali (CAA) is developing a Chlor Alkali and Ethylene Dichloride (CA-EDC) plant with capital expenditure set between US$350–400 million (Rp5.5–6.3 trillion) for 2025. According to Suryandi, Director of HR & Corporate Affairs at Chandra Asri Group, the project will significantly enhance the domestic downstream supply chain by producing essential base chemicals.

“The project’s wide-ranging multiplier effect will not only support industries such as textiles, pulp & paper, and water treatment but also contribute to job creation and national industrial self-sufficiency,” Suryandi said on May 6, 2025.