An incident involving individuals claiming to represent the Cilegon branch of Indonesia’s Chamber of Commerce and Industry (Kadin) has drawn public attention, after a viral video showed the group demanding a share in a Rp5 trillion (US$302 million) project from PT Chandra Asri Alkali during a meeting with Chinese contractor China Chengda Engineering Co Ltd.
In response, the Indonesian Chamber of Commerce and Industry (Kadin) has announced the formation of an investment oversight team and the development of a standard operating procedure (SOP) for the organization's involvement in national strategic projects.
“To prevent similar incidents from happening in the future,” Kadin stated in an official release on Wednesday, May 14, 2025.
Acts of extortion disguised as organizational demands have become increasingly common in early 2025. President Prabowo Subianto has expressed concern over these recurring threats to investment, which often involve groups masquerading as civil society organizations. Prabowo has coordinated with the Attorney General and the National Police Chief to address this issue.
“If these groups commit criminal acts, the government will not tolerate them. Prosecution is an option,” State Secretary Prasetyo Hadi said at the Presidential Palace last Friday, May 9, 2025.
Here are three high-profile investment projects disrupted by similar acts of intimidation in 2025:
1. BYD Factory, Subang, West Java
Deputy Speaker of the People's Consultative Assembly (MPR), Eddy Soeparno, revealed that the construction of the BYD electric vehicle (EV) plant in Subang was hindered by intimidation from local groups posing as community organizations. He received this information while visiting Shenzhen, China, as part of a government delegation.
“The government must be firm in handling this issue. Investors need a sense of security − it’s fundamental for investment,” Eddy said, on Wednesday, May 14, 2025.
According to Antara, BYD plans to invest Rp11.7 trillion in the project. The EV plant is expected to create thousands of jobs, support local suppliers in joining the global EV supply chain, and boost technology transfer in the manufacturing sector. The facility, spanning 108 hectares and expanding to 126 hectares, will include research and development centers and eco-friendly training facilities.
BYD Indonesia aims to increase production capacity from 150,000 to even higher volumes, with potential future expansion into battery and premium Plug-in Hybrid Electric Vehicle (PHEV) manufacturing. Workforce estimates are projected to grow from 8,700 to 18,814 employees, with commercial production set to begin in early 2026.
2. VinFast Factory, Subang, West Java
Vietnamese EV manufacturer VinFast has faced similar issues. Moeldoko, Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo), confirmed reports of disruptions during the development of VinFast's EV production facility.
VinFast is investing approximately US$200 million (Rp 3.2 trillion) in a facility with an annual capacity of 50,000 vehicles. It will include a body shop, general assembly, paint shop, and testing areas. Production of models VF 3 through VF 7 is slated to begin in Q4 2025.
3. Chandra Asri Alkali Plant, Cilegon, West Java
The most recent case involves the Chandra Asri Alkali project − part of Indonesia’s National Strategic Projects (PSN) under President Prabowo. A video that circulated online shows individuals claiming to be from "Kadin Cilegon" demanding a cut of the Rp15 trillion investment during a meeting with the project’s Chinese contractor.
The project, backed by Indonesia’s richest man, Prajogo Pangestu, aims to establish a world-scale chemical plant producing 400,000 tons of caustic soda and 500,000 tons of ethylene dichloride annually. Caustic soda is crucial for alumina and nickel processing, as well as for battery production, while ethylene dichloride is essential for manufacturing PVC, widely used in construction. Completion of the Chandra Asri Alkali facility is targeted for 2027.
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