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Kadin moves to address extortion issues by regional branch in Cilegon
A video circulating on social media over the weekend shows a tense exchange between individuals claiming to represent Kadin’s Cilegon branch and Chengda Engineering Co, a contractor for the CA-EDC project by petrochemical giant PT Chandra Asri Pacific.
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National strategic project: Chimneys stand tall at the newly constructed gas processing plants operated by Chandra Asri in the industrial city of Cilegon in Banten, West Java. The plants produce methyl tert-butyl ether (MTBE) and butene1. (Courtesy of Chandra Asri)
T
he Indonesian Chamber of Commerce and Industry (Kadin) will investigate alleged extortion practices involving people who claim to represent its regional branch in Cilegon, Banten, against a contractor of a giant petrochemical project in the area.
Kadin chairman Anindya Novyan Bakrie said in a statement on Tuesday that the business group rejected any form of pressure or intimidation that could impact legal certainty and the investment climate in Indonesia.
The chamber will set up an ethics and organizational verification team to assess the role and actions of Kadin Cilegon and its affiliates. If found guilty of wrongdoing, the Cilegon branch could face punishment ranging from a warning letter to a temporary suspension of the organization, as well as removal of the branch’s leadership.
The chamber will conduct an internal audit of its regional branches in Cilegon and Banten province, with the findings to be reported to the regional government and the Investment and Downstream Ministry, he said.
“Kadin is committed to ensuring organizational security for investors so [the incident] will not [set] a negative precedent in the future,” Anindya said.
In order to prevent similar issues going forward, Kadin will also draft a standard operating procedure for involvement in investment projects that involves a set code of ethics.
The statement followed a video circulating on social media over the weekend showing a tense exchange between individuals claiming to represent Kadin’s Cilegon branch and Chengda Engineering Co, a contractor for the CA-EDC project by petrochemical giant PT Chandra Asri Pacific.
