Danantara Investment Management (DIM) and the Indonesia Investment\nAuthority (INA) have officially completed a strategic investment\ntransaction in PT Chandra Asri Pacific Tbk\u2019s (TPIA) Chlor\nAlkali-Ethylene Dichloride (CA-EDC) project. The transaction value and\neach party\u2019s ownership stake were not disclosed.<\/p>\n
According to a joint statement issued on Thursday (15 October 2026),\nthe facility in Cilegon, Banten, is designed to produce around 400\nkilotonnes per annum (KTA) of caustic soda and 500 KTA of ethylene\ndichloride (EDC). Both chemicals are essential raw materials for a range\nof manufacturing and industrial processes.<\/p>\n
The project is expected to reduce dependence on imports, save foreign\nexchange and strengthen raw-material supplies for downstream industries.\nOne target sector is the domestic bauxite and alumina industrial chain,\nwhere demand for caustic soda is expected to continue rising in line\nwith the downstream processing agenda.<\/p>\n
As of September 2026, construction progress had reached around 80%.\nInstallation of the main equipment is under way, alongside construction\nof supporting infrastructure such as a jetty, trestle and storage\nfacilities. The project is targeted to begin commercial operations in\n2027.<\/p>\n
DIM chief executive Pandu Sjahrir said the company\u2019s role was to\ndirect capital towards sectors that support national economic resilience\nwhile maintaining commercial discipline.<\/p>\n
\u201cThe CA-EDC initiative reflects the kind of strategic investment that\ncan generate long-term value for Indonesia. This collaboration also\nreflects Danantara\u2019s role as a catalyst in encouraging private investor\nparticipation in nationally strategic projects,\u201d he said.<\/p>\n
INA Board of Directors Chair Oki Ramadhana said the authority\u2019s\ninvestment decision was based on two factors: the important role of\ncaustic soda and EDC in the national industrial value chain, and the\nproject\u2019s strong commercial fundamentals.<\/p>\n
\u201cAs Indonesia continues to develop its downstream industries, this\nproject addresses a strategic need, with the potential to strengthen\ndomestic supply and support the development of a more integrated\nindustrial base,\u201d Oki said.<\/p>\n
Chandra Asri Group president director and chief executive Erwin\nCiputra said the completion of the partnership was an important\nmilestone for the CA-EDC project. He said long-term financing from DIM\nand INA, combined with Chandra Asri\u2019s industrial experience, would\nstrengthen the resilience of national supplies of strategic\nchemicals.<\/p>\n
\u201cWith commercial operations targeted to begin in 2027, the project is\nalso expected to create around 3,000 jobs during construction and 250\npermanent positions during operations,\u201d Erwin said.<\/p>\n
Chandra Asri Group operates through three business pillars: Energy\n& Chemicals, Integrated Infrastructure and Mobility Solutions. Its\nportfolio includes a naphtha cracker in Cilegon with ethylene production\ncapacity of 0.9 million metric tonnes a year; a refinery with capacity\nof more than 300,000 barrels a day and a naphtha cracker producing 1.1\nmillion metric tonnes a year on Singapore\u2019s Bukom Island; and around 2.5\nmillion metric tonnes of downstream chemical assets on Jurong Island.\nThe group also operates around 60 Esso retail petrol stations.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/danantara-and-ina-complete-investment-in-chandra-asris-ca-edc-project-1792050659", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }