Danantara, INA to Invest Rp13 Trillion in Chandra Asri’s New Chemical Plant
Main Takeaways
|
JAKARTA, Investortrust.id — Indonesia’s sovereign wealth fund Indonesia Investment Authority (INA) and state investment agency Danantara Indonesia have signed a memorandum of understanding with PT Chandra Asri Pacific Tbk (TPIA) to invest $800 million (Rp13 trillion) in a new Chlor Alkali–Ethylene Dichloride (CA-EDC) chemical plant.
The investment aims to boost domestic production capacity of caustic soda and ethylene dichloride—two essential feedstocks for multiple downstream industries—while supporting Indonesia’s broader push toward industrial self-sufficiency.
The new facility, part of a designated National Strategic Project, will be developed by PT Chandra Asri Alkali (CAA), a subsidiary of Chandra Asri Group. The plant’s first phase targets an annual output of 400,000 metric tons of solid caustic soda (equivalent to 827,000 tons in liquid form) and 500,000 tons of ethylene dichloride.
Strategic Industrial Push
“This partnership aligns with our national development priorities and supports Indonesia’s economic transformation through downstream industrialization,” said Pandu Sjahrir, Chief Investment Officer of Danantara, in a statement on Tuesday, Jun 17.
According to Sjahrir, the chemical sector is critical to value chains spanning from manufacturing to energy transition, particularly in nickel processing and alumina refining. “This project reinforces national resilience by reducing dependence on imported materials,” he added.
INA CEO Ridha Wirakusumah echoed the sentiment, describing the collaboration as a strategic move to strengthen Indonesia’s industrial foundation.
“By combining the strength of institutional investors and industrial leaders, we’re not only addressing supply security but also laying the groundwork for scalable, long-term growth that enhances Indonesia’s global competitiveness,” Wirakusumah said.
Import Substitution and Export Potential
The project is expected to reduce Indonesia’s reliance on imported caustic soda, potentially saving up to Rp4.9 trillion annually. At the same time, ethylene dichloride production from the plant is targeted for export, with potential foreign exchange earnings estimated at Rp5 trillion per year.
“This partnership with Danantara and INA shows investor confidence in the growth prospects of Indonesia’s chemical industry,” said Chandra Asri Group President Director Erwin Ciputra. “Together, we’re building a strong foundation for sustainable industrial development and national economic progress.”