Chandra Asri Prepares Risk Mitigation for Spillovers from Middle East Conflict

Jakarta (ANTARA) - PT Chandra Asri Pacific Tbk is preparing risk mitigation steps to safeguard the continuity of operations at its plants amid geopolitical tensions in the Middle East that have prompted the closure of the Strait of Hormuz and could disrupt the petrochemical industry’s supply chain.

Suryandi, Director of Human Resources and Corporate Affairs of PT Chandra Asri Pacific Tbk, in a statement in Jakarta, on Thursday said the company has prepared a supply management system and operational planning to face the global dynamics.

‘In the context of developments in the global geopolitical situation, including the potential disruption of energy and logistics distribution in strategic areas such as the Strait of Hormuz, the delivery of this notice is a risk mitigation step and a prudent corporate precaution,’ he said.

He explained that the force majeure declaration issued by the company is a form of transparency to investors and business partners regarding external situations beyond the company’s control, as well as a common practice in global business when there is a significant disruption to international logistics routes.

‘Currently, all Chandra Asri production facilities remain in operation. There is no stoppage of operations, either at the Cilegon industrial area or at our facilities in Singapore,’ Suryandi said.

According to him, the closure of the Strait of Hormuz as a strategic route for the global energy and raw materials distribution indeed triggers logistics disruptions in various countries. A number of companies that depend on imports from the region have also experienced slower shipments.

However, he assured that these external disruptions would not halt production activities, thanks to the risk management system that had been established beforehand.