Cilegon Chamber Of Commerce And Industry Extortion Mode: IDR 5 Trillion Fee Project Palak Action Without Auction

CILEGON (Polda) Banten Regional Police revealed the mode of extortion carried out by three administrators of the Cilegon City Chamber of Commerce and Industry (Kadin) against the main contractor for the construction of the PT Chandra Asri Alkali (CAA) factory.

They allegedly forced foreign companies from China, PT China Chengda Engineering, to provide a project worth IDR 5 trillion without going through the auction process.

Three suspects have been named, namely the Chairman of the Cilegon City Chamber of Commerce and Industry Muh. Salim, Deputy Chairman of the Chamber of Commerce for Industry Ismatullah Ali, and Chairman of the Indonesian Fishermen Association (HNSI) Rufaji Jahuri.

Director of the General Criminal Investigation of the Banten Police, Kombes Pol Dian Setyawan, said the mode of extortion was carried out through a direct meeting that was marked by pressure and intimidation. Muh. Salim acts as an action driver, while Ismatullah forces company representatives to hand over the project to Kadin Cilegon.

"Ismatullah even bullied and shouted at the company, asking for a project allotment of IDR 5 trillion without an auction," Dian said in his statement, Sunday, May 18.

Rufaji Jahuri also helped pressure the company with threats to stop the project if HNSI was not involved. "This is a form of coercion and pressure on the company under the pretext of local involvement," explained Dian.

This mode was revealed after a video meeting between the Cilegon Chamber of Commerce and Industry management and representatives of PT China Chengda Engineering was widely circulated on social media. In the video, there is a demand for large project rations and threats that are conveyed openly.

The police then conducted an investigation, examining 14 witnesses including from the company. Based on evidence and witness testimony, investigators named the three suspects of extortion and coercion.

Heavy Punishment Threat

Muh. Salim and Ismatullah were charged with Article 368 of the Criminal Code concerning Extortion and Article 335 of the Criminal Code concerning Unpleasant Acts, with the threat of a sentence of more than five years in prison. Meanwhile, Rufaji is still being investigated intensively for further investigation.

"The investigation is still ongoing. It is possible that there will be new suspects if other parties are involved," said Dian.

This case is in the spotlight because it involves a large-scale project which is part of the development of the petrochemical industry in Cilegon. The act of coercion by parties on behalf of business organizations is considered as a form of intervention in the business world and the investment climate.

"We regret that there are parties who abuse the position of organization for personal and group interests. This injures the spirit of partnership between local entrepreneurs and investors," concluded Dian.