Danantara and INA Sign Investment Agreement for Chandra Asri CA-EDC Project
Jakarta — Danantara Indonesia, together with Indonesia Investment Authority (INA) and Chandra Asri Group, has signed a Conditional Share Subscription Agreement (CSSA) to strengthen domestic production capacity for Caustic Soda and Ethylene Dichloride (EDC) and enhance supply chain resilience.
The agreement follows a Memorandum of Understanding (MoU) previously signed by the three parties, with Danantara Indonesia and INA serving as strategic investors in the project.
Pandu Sjahrir, Chief Investment Officer of Danantara Indonesia, stated that the agreement affirms Danantara’s commitment to strengthening strategic national industries that deliver high added value, create employment opportunities, and accelerate Indonesia’s economic growth.
“This collaboration is not merely a response to import dependency challenges, but a concrete step to accelerate downstream industrialisation, a key driver of Indonesia’s economy,” Sjahrir said.
Eddy Porwanto, Acting Chairman of INA’s Board of Directors, noted that the investment reflects INA’s long-term investment mandate to mobilise capital in priority sectors for national development.
“This collaboration aims to build a strong capital foundation to support sustainable development of strategic raw material industry capacity. These efforts are expected to drive downstream industrialisation, increase domestic value addition, and strengthen the competitiveness and resilience of national industry,” Porwanto stated.
Erwin Ciputra, President Director and CEO of Chandra Asri Group, expressed hope that the CA-EDC project would significantly reduce reliance on imported strategic chemicals, strengthen national supply chain resilience, and support downstream industrialisation.
“Additionally, facility construction and operations will create approximately 3,000 jobs during the construction phase and 250 permanent positions upon operation, whilst delivering sustained benefits to communities and industry in Cilegon and surrounding areas,” Ciputra said.
The three-party agreement marks the capital commitment phase for construction of the Chlor Alkali-Ethylene Dichloride (CA-EDC) plant in Cilegon, Banten, developed and operated by Chandra Asri Group. The project aims to reduce reliance on critical raw materials imported for various industries whilst advancing the downstream industrialisation agenda as part of long-term economic transformation.
Domestic Caustic Soda production capacity is expected to significantly strengthen import substitution and domestic supply resilience. EDC production will not only support domestic industry needs but also presents potential for export expansion, contributing to foreign exchange earnings and strengthening the competitiveness of Indonesia’s chemical industry.
The CA-EDC plant project has a total value of $800 million and forms part of the National Strategic Project (PSN) focusing on essential raw material production for upstream and downstream industries.
Caustic Soda is used as a raw material in soap and detergent production, alumina purification, and paper manufacturing. EDC is a primary raw material supporting the construction and packaging industries.
Under the agreed investment structure, Danantara and INA will jointly invest a total of $200 million. These funds will be used to construct the strategic CA-EDC industrial facility, managed by PT Chandra Asri Alkali (CAA), a subsidiary of Chandra Asri Group, with operations planned to commence in 2027.
In the initial phase, the CA-EDC plant will have annual production capacity of 400,000 tonnes of dry Caustic Soda per year and 500,000 tonnes of Ethylene Dichloride.
The facility will be developed with high standards of industrial technology and safety to ensure operational efficiency, supply reliability, and compliance with sustainability principles.
The collaboration among Danantara, INA, and Chandra Asri Group represents a synergy between state investment managers and a leading petrochemical company. By strengthening the domestic supply chain whilst opening broader export opportunities, this partnership contributes to accelerating sustainable industrialisation and reinforcing Indonesia’s competitive position in the global market.