IDR 5 Trillion and Our Shameful Price

The IDR 5 trillion project that entered Cilegon, Banten, initially brought high hopes. Besides being expected to boost the local economy, this investment was supposed to strengthen Indonesia's image as a capital-friendly country. But the opposite happened.

What went viral wasn't the project's achievements, but rather individuals from the Cilegon Chamber of Commerce and Industry (Kadin) who openly demanded "project shares" without bidding. They presented the trillions as if they were their own, when in fact, they were funds from investors.

The method was similar to street extortion, only carried out under the guise of an official organization that is supposed to be a partner for entrepreneurs.

Let's be honest. This doesn't seem to be the first time this has happened. Many entrepreneurs—both local and foreign—have complained about "security fees" and "conditioning allowances." Not all have proof. Not all dare to speak out. Only this time, it was recorded and circulated.

If official organizations are not clean, Indonesia will become a black market for investment. Money may come in, but investors won't stay because trust has been lost.

Even more distressing, because of these individuals, the name of Kadin, which should symbolize partnership, actually reflects a dark space of rent-seeking. Established in 1968 and formalized through Law No. 1 of 1987, the Indonesian Chamber of Commerce and Industry (Kadin) should be a shared home for entrepreneurs, not a place to formulate project allocation schemes.

Kadin should be a bridge, not a trap. Three of its members were suspended. The Chairman of the Indonesian Chamber of Commerce and Industry, Anindya Bakrie, called them individuals. The Governor of Banten expressed his disappointment.

The three individuals have now been named suspects by the Banten Regional Police for alleged extortion of a Chinese contractor building a factory at PT Chandra Asri Alkali (CAA). Police say there was active communication that pointed to elements of extortion.

This isn't just about money. It's about trust. Investors may invest, but they will withdraw if they encounter a culture of extortion, even if they use official letterhead. Trust can't be bought. Once broken, it takes a long time to recover.

According to data from the Banten Investment and One-Stop Integrated Service Agency, total investment inflows into the province in 2024 reached IDR 85.44 trillion. Cilegon is a major magnet due to its strategic location and strong industrial base.

However, all of those figures could collapse just because of a single case of alleged extortion by an individual from the Cilegon Chamber of Commerce and Industry (Kadin). Investors aren't withdrawing because they can't afford to pay, but because they don't want to pay something unreasonable.

Indonesia has long touted the ease of doing business—bureaucratic reform, digital licensing, tax incentives. But one mischievous act could undo it all.

What's the point of the e-catalog and OSS systems if back channels still play a key role? If the integrity of business actors and officials is compromised, even the most sophisticated system is useless.

Ironically, this happened in Cilegon—an industrial city that supports national exports through Krakatau Steel and Chandra Asri. Imagine if investors moved to Vietnam or Malaysia because they felt more respected there.

This case shows that the biggest enemy of the investment climate isn't always external. It could even be internal.

Because our problem isn't a lack of systems. But rather, the "quota" mentality remains stronger than the spirit of healthy competition.

If trust is lost, don't expect investment news to make headlines again. All that's left is bad news—and that's more costly than even IDR 5 trillion.

If Indonesia wants to maintain trust, all disruptive factors must be permanently eliminated. Not because we lack capital, but because we lack trust-keepers.