Chandra Asri Announces Force Majeure as Iran–US War Escalates
Chandra Asri Group has announced a force majeure and will reduce the operating level of its plants as a precaution against disruptions to raw material supply. The move was taken due to the rising escalation of the conflict in Iran and the closure of the Strait of Hormuz, which is starting to affect the petrochemical industry.
Suryandi, the Director of Human Resources and Corporate Affairs at Chandra Asri Group, explained that the conflict involving the United States and Iran is affecting the smooth distribution of raw materials along global logistics routes, including around the Strait of Hormuz, a key route for energy and petrochemical trade.
On the back of this situation, the company has issued force majeure notices to its business partners in accordance with contractual terms. Suryandi said this step is an administrative action taken in a measured manner after considering potential impacts on fulfilling obligations to customers.
As a mitigation measure, the company will lower its run rate or plant production levels. Management is also coordinating with customers to minimise the impact on the supply chain and ongoing contracts.
Suryandi added that this operational reduction is a prudent step amid global dynamics. The company remains committed to maintaining operational continuity and business resilience, while continuing to evaluate developments and their potential impact on future business activities.
Earlier, the Islamic Revolutionary Guard Corps (IRGC) announced the closing of the Strait of Hormuz from Monday, 2 March 2026. Iranian state media reported that local authorities would attack any ships attempting to transit the route.
The Strait of Hormuz, located between Iran and Oman, is one of the world’s most important oil transit routes. Around 20% of global oil supplies pass through this narrow waterway daily.
The threat was conveyed after Iran had previously warned it would close this strategic export route. If actually closed, about one-fifth of the global oil flow could be disrupted and crude oil prices could spike.