Strait of Hormuz Tension Prompts Prajogo's Issuer (TPIA) to Declare Force Majeure

PT Chandra Asri Pacific Tbk. (TPIA), the issuer owned by Prajogo Pangestu, has announced a force majeure notice to its business partners in connection with the military conflict in the Strait of Hormuz, the Middle East.

The company’s Human Resources & Corporate Affairs Director Suryandi said the ongoing interstate tensions are impacting the smooth distribution of raw materials in the supply chain.

‘The company has issued force majeure notices to its business partners in accordance with the contractual provisions in force,’ he told CNBC Indonesia on Wednesday (4/3/2026).

He explained that the submission is an administrative step conducted in a measured manner, based on a comprehensive assessment of potential implications for meeting obligations to customers, and as a form of transparency to all stakeholders.

‘We are actively monitoring developments in the conflict between the United States and Iran, which are evolving, and taking anticipatory steps to ensure operational resilience across all our business units,’ he said.

As a mitigation measure, Suryani noted that TPIA will reduce run rates at the plant. ‘We are currently coordinating with customers to mitigate the impact of this,’ he added.

He added that in a global, dynamically moving environment, management is committed to maintaining operational continuity, business resilience, and continues to evaluate potential impacts on business activities.