Chandra Asri (TPIA) Speaks Out on the Impact of the Strait of Hormuz Closure, Cilegon Plant Continues to Operate Profitably

PT Chandra Asri Pacific Tbk (TPIA) is taking a tactical approach to secure its operations amid escalating Middle East tensions. The company has prepared a comprehensive risk-mitigation protocol to address potential disruptions from the closure of the Strait of Hormuz, which threatens global petrochemical supply chains.

Suryandi, Director of Human Resources and Corporate Affairs, said the move reflects corporate prudence in responding to the highly fluid geopolitical dynamics, and that this was disclosed by Antara on Thursday, 5 March. He explained that declaring force majeure is a standard procedure in global business to provide transparency to investors and partners; the trigger is significant disruptions to international logistics routes beyond the company’s control.

However, he stressed that the status does not mean production stoppage. “Currently, all Chandra Asri production facilities remain operational. There is no production shutdown, neither at the Cilegon industrial complex nor at our facility in Singapore.”

As of 5 March 2026, the Strait of Hormuz has been completely paralysed. 300 tanker vessels are trapped in the Gulf of Oman, raising concerns of energy and raw material shortages for industries worldwide.

To safeguard business continuity, Chandra Asri has implemented anticipatory steps, including real-time monitoring of global geopolitical developments, flexible adjustment of plant operating levels based on feedstock availability, ongoing coordination with customers and logistics partners to mitigate distribution delays, and alignment with stakeholders to meet contractual obligations.

Suryandi added that sustaining a strategic national industry requires a conducive ecosystem, with collaboration among all stakeholders and government policy support being crucial to ensuring domestic supply chain stability in these challenging times.