Danantara and INA Complete Investment in Chandra Asri’s CA-EDC Project
Danantara Investment Management (DIM) and the Indonesia Investment Authority (INA) have officially completed a strategic investment transaction in PT Chandra Asri Pacific Tbk’s (TPIA) Chlor Alkali-Ethylene Dichloride (CA-EDC) project. The transaction value and each party’s ownership stake were not disclosed.
According to a joint statement issued on Thursday (15 October 2026), the facility in Cilegon, Banten, is designed to produce around 400 kilotonnes per annum (KTA) of caustic soda and 500 KTA of ethylene dichloride (EDC). Both chemicals are essential raw materials for a range of manufacturing and industrial processes.
The project is expected to reduce dependence on imports, save foreign exchange and strengthen raw-material supplies for downstream industries. One target sector is the domestic bauxite and alumina industrial chain, where demand for caustic soda is expected to continue rising in line with the downstream processing agenda.
As of September 2026, construction progress had reached around 80%. Installation of the main equipment is under way, alongside construction of supporting infrastructure such as a jetty, trestle and storage facilities. The project is targeted to begin commercial operations in 2027.
DIM chief executive Pandu Sjahrir said the company’s role was to direct capital towards sectors that support national economic resilience while maintaining commercial discipline.
“The CA-EDC initiative reflects the kind of strategic investment that can generate long-term value for Indonesia. This collaboration also reflects Danantara’s role as a catalyst in encouraging private investor participation in nationally strategic projects,” he said.
INA Board of Directors Chair Oki Ramadhana said the authority’s investment decision was based on two factors: the important role of caustic soda and EDC in the national industrial value chain, and the project’s strong commercial fundamentals.
“As Indonesia continues to develop its downstream industries, this project addresses a strategic need, with the potential to strengthen domestic supply and support the development of a more integrated industrial base,” Oki said.
Chandra Asri Group president director and chief executive Erwin Ciputra said the completion of the partnership was an important milestone for the CA-EDC project. He said long-term financing from DIM and INA, combined with Chandra Asri’s industrial experience, would strengthen the resilience of national supplies of strategic chemicals.
“With commercial operations targeted to begin in 2027, the project is also expected to create around 3,000 jobs during construction and 250 permanent positions during operations,” Erwin said.
Chandra Asri Group operates through three business pillars: Energy & Chemicals, Integrated Infrastructure and Mobility Solutions. Its portfolio includes a naphtha cracker in Cilegon with ethylene production capacity of 0.9 million metric tonnes a year; a refinery with capacity of more than 300,000 barrels a day and a naphtha cracker producing 1.1 million metric tonnes a year on Singapore’s Bukom Island; and around 2.5 million metric tonnes of downstream chemical assets on Jurong Island. The group also operates around 60 Esso retail petrol stations.