Chandra Asri Announces Force Majeure Amid Hormuz Strait Supply Disruption, Shares Slump

Chandra Asri Pacific Tbk, the Indonesian petrochemical producer, has announced force majeure due to disruptions in shipments of raw materials via the Strait of Hormuz following the outbreak of the Iran conflict. The company informed customers of the disruption via a notice dated 2 March 2026, seen by Bloomberg. The notice stated that the duration of the force majeure could not yet be determined.

‘We continue to monitor developments in the situation between the United States and Iran and have implemented precautionary steps to safeguard operational resilience across all of our business units,’ the company said, as quoted by Bloomberg on Tuesday 3 March 2026.

‘As part of those steps, we will adjust run rates at our plants.’

The conflict between Iran, Israel, and the United States has disrupted the flow of oil shipments through the Strait of Hormuz, with only a small number of tankers passing since the clashes began in the area. Around a fifth of the world’s oil and liquefied natural gas passes through that narrow waterway.

Chandra Asri operates Indonesia’s largest integrated petrochemical complex, producing olefins and polyolefins. The company also owns and operates refining and downstream chemical assets in Singapore through a joint venture, according to its official site.

The assets include a refinery with a capacity of 237,000 barrels per day and a naphtha cracker with a capacity of 0.9 million metric tonnes per year. In trading on Wednesday 4 March 2026, Chandra Asri’s shares fell to Rp5,350, down 8.15%.