Chandra Asri (TPIA) Clarifies Force Majeure Linked to Strait of Hormuz Developments
Chandra Asri (TPIA) Clarifies Force Majeure Linked to Strait of Hormuz Developments
Jakarta, CNBC Indonesia — PT Chandra Asri Pacific Tbk. (TPIA), the petrochemical company owned by Prajogo Pangestu, has issued a clarification regarding a force majeure notice addressed to customers amid global geopolitical dynamics that could affect energy distribution channels and international supply chains, including developments in the Strait of Hormuz.
The petrochemical company owned by Prajogo Pangestu stated that the force majeure notice is a preventive step that must be taken administratively in accordance with contractual provisions, as a means of risk mitigation against losses and transparency about external conditions outside the Company's control.
Director of Human Resources & Corporate Affairs of the Chandra Asri Group, Suryandi, explained that the submission of force majeure is a standard procedure in global business practice when there is potential disruption, including international logistics routes.
“This step we take as a form of transparency and to prevent significant losses to business partners and stakeholders. The force majeure notice does not automatically reflect a cessation of the Company's operations; rather, it is part of risk mitigation against the impacts of evolving external situations,” Suryandi said in the information disclosure, Thursday (5 March 2026).
He added that to date, TPIA's operational activities are continuing as usual. Nevertheless, the company continues to monitor global developments carefully, and conducts periodic evaluations of potential implications that could cause direct or indirect operational disruption.
As part of measured risk management, Chandra Asri conducts run-rate adjustments selectively in line with supply conditions and production needs. This step is taken to safeguard business continuity and supply stability for customers.
In addition, the company has a risk management framework and an operational planning system designed to respond to market dynamics adaptively. The efforts include diversification of raw material sources, prudent inventory management, and strengthened coordination across the supply chain to maintain operational flexibility.
Communication and coordination with customers, suppliers and logistics partners is also carried out on an ongoing basis to ensure information alignment and readiness to anticipate conditions that could affect the fulfilment of contractual obligations.
In this dynamic global situation, Chandra Asri focuses on operational continuity and business resilience, while continuing to conduct periodic evaluations of developments.