Chandra Asri Acquires Singapore Refinery, Secures Rp 13 Trillion Investment—What’s Next for TPIA?

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JAKARTA, Investortrust.id — PT Chandra Asri Pacific Tbk, or TPIA, has completed the acquisition of a refinery in Singapore from Shell through a strategic partnership with commodities giant Glencore, marking a pivotal move to expand its regional footprint and production capacity.

The deal, valued at approximately Rp 4.2 trillion ($255 million), is expected to quadruple the company’s annual output from 4.2 million tons to 17.2 million tons. The transaction coincides with an institutional investment commitment of Rp 13 trillion ($790 million) from Indonesia Investment Authority (INA) and the state-backed Danantara fund—both of which signal a long-term confidence in TPIA’s transformation.

Surge in Share Value and Investor Sentiment

Following the announcement, TPIA shares surged 3.28% to Rp 10,225 on the Indonesia Stock Exchange on Tuesday, June 17, 2025. Its market capitalization temporarily overtook that of its sister company, PT Barito Renewables Energy Tbk (BREN), underscoring strong market optimism.

Panin Sekuritas equity analyst Reydi Octa attributed the uptick to growing institutional trust in TPIA’s strategic direction. “The Rp 13 trillion injection reaffirms Danantara and INA’s commitment to Indonesia’s energy, logistics, and petrochemical transition,” Reydi said, noting that Barito Pacific (BRPT) still holds a 34.63% stake in TPIA.

The capital will be directed toward a chlor-alkali and ethylene dichloride (CA-EDC) plant expansion—a cornerstone of TPIA’s sustainable growth agenda. The company expects the project to not only improve global competitiveness but also diversify revenue sources into green and circular economy sectors.

A Structural Shift in Petrochemicals

Hendra Wardana, founder of Stocknow.id, emphasized that the investment goes beyond capital infusion. “It is a form of institutional endorsement of TPIA’s shift from a conventional chemical producer to an integrated energy and downstream materials conglomerate.”

He added that INA and Danantara’s involvement would open access to more favorable financing terms and global partnerships across sustainability-focused sectors.

At a macro level, the partnership reflects Indonesia’s push for downstream industrialization based on domestic resources, while minimizing fiscal risks through blended financing from sovereign and private sectors.

Strategic, Yet Not Without Risks

TPIA remains in a transition phase. The company reported a net loss of Rp 389 billion ($23.6 million) in Q1 2025—a 24.5% year-on-year improvement—amid tight margins and cost pressures. Still, analysts believe the long-term outlook remains positive, buoyed by Indonesia’s growing role in regional energy and materials supply chains.

Despite promising projections—including a potential fivefold revenue increase by 2026—valuation concerns linger. TPIA’s price-to-book ratio stands at 20.5 times, compared to an industry average of 2–3 times. “This premium pricing indicates high investor expectations, but also highlights execution risk,” Hendra noted.

From a technical perspective, TPIA stock is nearing a psychological support level at Rp 10,000. Analysts suggest a short-term resistance target of Rp 10,525, with potential for further gains toward Rp 11,225–Rp 12,000 if trading volumes strengthen.

“We recommend a speculative buy in the Rp 9,900–Rp 10,200 range for medium- to long-term investors willing to tolerate short-term volatility,” Hendra said.