Chandra Asri Management Explains Official Lifting of Force Majeure Status

PT Chandra Asri Pacific Tbk (Chandra Asri) has announced the end of the force majeure status previously imposed in relation to polymer and monomer supplies. That status was imposed and announced in early March 2026.

“The end of the force majeure status marks an important step for the company in ensuring the reliability of supplies for the national industrial sector,” said Suryandi, Director of Human Resources and Corporate Affairs at Chandra Asri Group, in an official statement on Tuesday (5/5/2026).

“This decision was taken after the company successfully implemented various strategic measures to maintain production continuity amid global supply chain challenges,” he added.

With operations gradually stabilising, the company continues to strengthen production capacity and meet domestic market needs, he said.

The company, he revealed, has proactively secured alternative raw material sources from various international markets, optimised refinery facilities in Singapore, and expanded procurement to the United States to ensure domestic customer needs remain fulfilled.

“These steps were taken despite facing logistics challenges and higher procurement costs. Shipments from the United States take about 50-70 days, longer than supplies from the Middle East region, which typically range from 15-20 days,” he explained.

“Additionally, naphtha from the United States is priced at around US$150-200 per metric tonne, higher than supplies from the Middle East. These efforts were undertaken because the company prioritises domestic needs in the current global conditions,” he stated.

Suryandi revealed that to enhance supply reliability going forward, ethylene production from the olefin cracker facility is now prioritised for the company’s internal polymer plant needs.

“This policy supports the optimisation of polypropylene (PP) and polyethylene (PE) production, which are key raw materials for various strategic sectors such as packaging, automotive, construction, logistics, healthcare, and consumer goods,” he explained.

“Chandra Asri is also strengthening supply continuity through monomer and ethylene supplies from group facilities in Singapore. This synergy reflects the advantages of the company’s integrated business model in maintaining supply chain resilience, enhancing operational flexibility, and responding to market needs quickly and efficiently,” he said.