Latest news with #ChandraAsri
Bloomberg
21-05-2025
- Business
- Bloomberg
Chandra Asri Is Said to Seek $1 Billion Valuation for Unit's IPO
Chandra Asri Pacific's infrastructure investment unit is seeking a valuation of at least $1 billion in its planned initial public offering in Indonesia, according to people familiar with the matter. The unit, Chandra Daya Investasi, aims to raise $100 million or more in a listing that could take place in the coming months, the people said, asking not to be identified because the information is private.
Business Times
19-05-2025
- Business
- Business Times
Indonesia wages war on extortion that threatens to derail investor confidence
[JAKARTA] Indonesian police have officially named suspects in a major extortion case that has shaken the country's investment community to its core, marking a crucial step in the government's intensified crackdown on thuggery, illegal levies and intimidation targeting businesses. On Saturday (May 17), the authorities identified three individuals suspected of orchestrating extortion demands linked to the multitrillion-rupiah chlor-alkali plant project in Cilegon, owned by Chandra Alkali, a subsidiary of petrochemical giant Chandra Asri. Among the suspects are two prominent figures affiliated with the Cilegon branch of the Indonesian Chamber of Commerce and Industry, as well as one from a local fishermen's association. The extortion attempt, which went viral on social media, reportedly involved demands for a project share worth five trillion rupiah (S$393 million) outside the official tender process, shining a harsh light on persistent rent-seeking practices that continue to undermine Indonesia's investment climate. Chandra Alkali is developing the 15 trillion rupiah project in partnership with Chinese contractor Chengda Engineering. Located in the industrial city of Cilegon, about two hours from Jakarta, the project is seen as a key part of Indonesia's downstreaming push. The project was granted national strategic project status earlier this year, meaning it receives priority treatment and legal backing from the government. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Combat on thuggery The Indonesian government has pledged to take firm action against extortion and illegal levies that continue to plague the country's investment climate, in a bid to boost investor confidence and accelerate economic growth. President Prabowo Subianto last week instructed law enforcement authorities to take firm action against all forms of extortion and illegal levies targeting businesses, particularly in strategic sectors such as manufacturing, mining and infrastructure. According to Deputy Investment Minister Todotua Pasaribu, the president emphasised that all extortion cases must be treated with utmost seriousness and resolved thoroughly by the appropriate authorities. This statement came after officials held a meeting with Chandra Asri, which was targeted by alleged extortion attempts from local contractors last week. 'Any form of interference, especially one that disrupts the investment climate in this country, will be subject to investigation and legal action,' Pasaribu said, as reported by the Antara news agency. The country's police chief Listyo Sigit Prabowo said his office had issued an official directive to launch an intelligence-driven crackdown on thuggery. He also urged investors to report any acts that hinder investment activities directly to the police. Tip of the iceberg The extortion case involving the Chandra Asri group is not an isolated incident. Indonesian police report having resolved more than 3,300 cases of thuggery since launching a nationwide crackdown in early May targeting rogue actors operating under the guise of civic organisations. Another reported case of intimidation and coercion involves the high-profile investment by Vietnamese electric vehicle manufacturer VinFast. The issue came to light after deputy speaker of the People's Consultative Assembly, Eddy Soeparno, received complaints from investors during a visit to the VinFast site last April as reported by Kompas. The electric car maker is developing a 170-hectare assembly plant in Subang, West Java, with an investment valued at four trillion rupiah. Incidents of intimidation and extortion have increasingly affected small-scale business owners across various regions, posing additional challenges for local entrepreneurs and hindering grassroots economic growth. Business groups have long called for reforms to address security issues and reassess the role of mass organisations, which have repeatedly been cited as a source of concern for investors. Shinta Kamdani, chairperson of the Indonesian Employers' Association, told The Business Times that extortion by rogue elements within these organisations not only affects individual companies, but also risks damaging Indonesia's overall competitiveness as an investment destination. 'Disruptions caused by such actions can lead to higher business costs, increase uncertainty, and undermine investor confidence in placing capital in Indonesia.' The country is home to more than 550,000 mass organisations, or ormas – civil society groups recognised under Indonesian law and registered with the Ministry of Home Affairs. These organisations, some backed by public funds and government grants, were originally founded as pillars of community engagement, designed to foster public participation and support national unity and development. However, their role in shaping Indonesia's investment climate has been mixed – while some have played constructive roles, others have been linked to disruptive practices that undermine investor confidence. Stumbling block The controversy comes at a critical time as Prabowo intensifies efforts to attract both domestic and foreign investment, with the goal of creating more than three million jobs through industrial development, and steering South-east Asia's largest economy towards his ambitious 8 per cent growth target. Wijayanto Samirin, an economist at Paramadina University, said that intimidation has long been a persistent complaint among national businesspeople. However, the recent scandals come at a high-stakes time when Indonesia is already on a knife's edge, struggling with an early wave of de-industrialisation and layoffs. 'It is also happening while Indonesia competes with Vietnam, India and Thailand to attract the relocation of Chinese industries seeking new investment destinations to avoid (US President Donald) Trump's tariffs,' he told BT. Indonesia is targeting to attract investment exceeding 13,000 trillion rupiah by 2029, reflecting its ambitious commitment to drive sustained economic growth and development over the coming years. Observers said maintaining a strong foundation of legal certainty is essential to building and sustaining investor confidence over the long term. Professor Didik Rachbini, senior economist at the Institute for Development of Economics and Finance, said the Indonesian government must enforce the law consistently and indiscriminately on the ground. 'The government has no other option, it must act decisively, period. Indonesia must take firm steps to eradicate extortion, thuggery and other security threats that hinder investment activity,' he said. 'If not, the consequences could be critical for the investment climate, the economy, employment opportunities and public income.'
Business Times
19-05-2025
- Business
- Business Times
Indonesia wages war on extortion threatening to derail investor confidence
[JAKARTA] Indonesian police have officially named suspects in a major extortion case that has shaken the country's investment community to its core, marking a crucial step in the government's intensified crackdown on thuggery, illegal levies and intimidation targeting businesses. On Saturday (May 17), the authorities identified three individuals suspected of orchestrating extortion demands linked to the multitrillion-rupiah chlor-alkali plant project in Cilegon, owned by Chandra Alkali, a subsidiary of petrochemical giant Chandra Asri. Among the suspects are two prominent figures affiliated with the Cilegon branch of the Indonesian Chamber of Commerce and Industry, as well as one from a local fishermen's association. The extortion attempt, which went viral on social media, reportedly involved demands for a project share worth five trillion rupiah (S$393 million) outside the official tender process, shining a harsh light on persistent rent-seeking practices that continue to undermine Indonesia's investment climate. Chandra Alkali is developing the 15 trillion rupiah project in partnership with Chinese contractor Chengda Engineering. Located in the industrial city of Cilegon, about two hours from Jakarta, the project is seen as a key part of Indonesia's downstreaming push. The project was granted national strategic project status earlier this year, meaning it receives priority treatment and legal backing from the government. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Combat on thuggery The Indonesian government has pledged to take firm action against extortion and illegal levies that continue to plague the country's investment climate, in a bid to boost investor confidence and accelerate economic growth. President Prabowo Subianto last week instructed law enforcement authorities to take firm action against all forms of extortion and illegal levies targeting businesses, particularly in strategic sectors such as manufacturing, mining and infrastructure. According to Deputy Investment Minister Todotua Pasaribu, the president emphasised that all extortion cases must be treated with utmost seriousness and resolved thoroughly by the appropriate authorities. This statement came after officials held a meeting with Chandra Asri, which was targeted by alleged extortion attempts from local contractors last week. 'Any form of interference, especially one that disrupts the investment climate in this country, will be subject to investigation and legal action,' Pasaribu said, as reported by the Antara news agency. The country's police chief Listyo Sigit Prabowo said his office had issued an official directive to launch an intelligence-driven crackdown on thuggery. He also urged investors to report any acts that hinder investment activities directly to the police. Tip of the iceberg The extortion case involving the Chandra Asri group is not an isolated incident. Indonesian police report having resolved more than 3,300 cases of thuggery since launching a nationwide crackdown in early May targeting rogue actors operating under the guise of civic organisations. Another reported case of intimidation and coercion involves the high-profile investment by Vietnamese electric vehicle manufacturer VinFast. The issue came to light after deputy speaker of the People's Consultative Assembly, Eddy Soeparno, received complaints from investors during a visit to the VinFast site last April as reported by Kompas. The electric car maker is developing a 170-hectare assembly plant in Subang, West Java, with an investment valued at four trillion rupiah. Incidents of intimidation and extortion have increasingly affected small-scale business owners across various regions, posing additional challenges for local entrepreneurs and hindering grassroots economic growth. Business groups have long called for reforms to address security issues and reassess the role of mass organisations, which have repeatedly been cited as a source of concern for investors. Shinta Kamdani, chairperson of the Indonesian Employers' Association, told The Business Times that extortion by rogue elements within these organisations not only affects individual companies, but also risks damaging Indonesia's overall competitiveness as an investment destination. 'Disruptions caused by such actions can lead to higher business costs, increase uncertainty, and undermine investor confidence in placing capital in Indonesia.' The country is home to more than 550,000 mass organisations, or ormas – civil society groups recognised under Indonesian law and registered with the Ministry of Home Affairs. These organisations, some backed by public funds and government grants, were originally founded as pillars of community engagement, designed to foster public participation and support national unity and development. However, their role in shaping Indonesia's investment climate has been mixed – while some have played constructive roles, others have been linked to disruptive practices that undermine investor confidence. Stumbling block The controversy comes at a critical time as Prabowo intensifies efforts to attract both domestic and foreign investment, with the goal of creating more than three million jobs through industrial development, and steering South-east Asia's largest economy towards his ambitious 8 per cent growth target. Wijayanto Samirin, an economist at Paramadina University, said that intimidation has long been a persistent complaint among national businesspeople. However, the recent scandals come at a high-stakes time when Indonesia is already on a knife's edge, struggling with an early wave of de-industrialisation and layoffs. 'It is also happening while Indonesia competes with Vietnam, India and Thailand to attract the relocation of Chinese industries seeking new investment destinations to avoid (US President Donald) Trump's tariffs,' he told BT. Indonesia is targeting to attract investment exceeding 13,000 trillion rupiah by 2029, reflecting its ambitious commitment to drive sustained economic growth and development over the coming years. Observers said maintaining a strong foundation of legal certainty is essential to building and sustaining investor confidence over the long term. Professor Didik Rachbini, senior economist at the Institute for Development of Economics and Finance, said the Indonesian government must enforce the law consistently and indiscriminately on the ground. 'The government has no other option, it must act decisively, period. Indonesia must take firm steps to eradicate extortion, thuggery and other security threats that hinder investment activity,' he said. 'If not, the consequences could be critical for the investment climate, the economy, employment opportunities and public income.'
Forbes
08-05-2025
- Business
- Forbes
Indonesian Billionaire's Chandra Asri Expands In Singapore With Chevron Phillips Deal
Storage tanks at the Shell refinery on Pulau Bukom in Singapore on Wednesday, 25 August 2021. A joint venture backed by Indonesian billionaire Prajogo Pangestu's Chandra Asri and commodities trader Glencore is expanding its presence in Singapore, with the acquisition of Chevron Phillips' polyethylene manufacturing operations. Under the deal, Aster Chemicals and Energy will buy Chevron Phillips Singapore Chemicals' manufacturing facility, which annually produces 400,000 tons of high-density polyethylene that's used to make plastic bottles and food containers, the company said in a statement. The sale was approved by Chevron Phillips and its partners including EDB Investments and Sumitomo Chemical Co. Financial details weren't disclosed. 'This acquisition represents a key achievement for Aster, supporting our strategic goals with new capabilities and strengthening our offerings to customers,' Erwin Ciputra, group CEO of Aster said in the statement. The deal comes a month after another Chandra Asri and Glencore joint venture completed the acquisition of Shell's refinery and petrochemical assets in Singapore. The latest acquisition bolsters group's position in the Southeast Asian petrochemical hub where it also operates a refinery capable of producing 237,000 barrels of oil per day, an ethylene cracker on Pulau Bukom as well as a petrochemical plant on Jurong Island. Jakarta-listed Chandra Asri is part of Barito Pacific, a company originally focused on timber that tycoon Prajogo Pangestu transformed into a major player in energy and petrochemicals. With a real-time net worth of $19.8 billion, Pangestu ranks among Indonesia's wealthiest individuals. He also holds stakes in Petrindo Jaya Kreasi, a coal mining firm, and Barito Renewables—both of which went public in 2023.
Reuters
07-05-2025
- Business
- Reuters
Aster to acquire Chevron Phillips Singapore Chemicals
Companies Show more companies SINGAPORE, May 7 (Reuters) - Aster Chemicals and Energy will acquire Chevron Phillips Singapore Chemicals through its affiliate Chandra Asri Capital, the company said in a press release on Wednesday. Chevron Phillips Singapore Chemicals currently operates a 400,000 metric ton per year (tpy) polyethylene facility a building block in Singapore's Jurong Island. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Polyethylene is a type of plastic resin used in the packaging, construction and medical industries. "This acquisition represents a key achievement for Aster, supporting our strategic goals with new capabilities and strengthening our offerings to customers," the CEO of Singapore-based Aster Chemicals and Energy, Erwin Ciputra, said. The company did not reveal the investment value of this acquisition. Last month, Aster Chemicals and Energy, a joint venture between Chandra Asri and Glencore (GLEN.L), opens new tab, completed its purchase of Shell's Singapore refinery and refining assets.
