Chandra Asri And INA Sign Memorandum Of Understanding to Pursue the Joint Development of a World-Scale Chlor-Alkali Plant in Indonesia

By : Nata Kesuma | Thursday, April 13 2023 - 22:45 IWST

PT Chandra Asri Petrochemical Tbk (TPIA)
PT Chandra Asri Petrochemical Tbk (TPIA) - Jakarta, 13 April 2023 – PT Chandra Asri Petrochemical Tbk (Chandra Asri), Indonesia's largest integrated petrochemical company, and Indonesia Investment Authority (INA), the nation’s sovereign wealth fund, have signed a Memorandum of Understanding (MoU) to collaboratively develop a world-scale chlor-alkali plant in Indonesia.

INA, along with other potential international investors, will explore taking an equity stake in PT Chandra Asri Alkali (CAA), a wholly-owned subsidiary of Chandra Asri that has been established as a special purpose vehicle to invest in the development of the world-scale chlor-alkali plant.

Once operational, the plant will produce more than 400,000 metric tons per annum of caustic soda (also known as sodium hydroxide), and 500,000 metric tons per annum of ethylene dichloride (EDC).

As part of the accelerated development of this plant, Chandra Asri has signed an basic engineering and licensing agreement with Asahi Kasei Corporation (AKC) from Japan, a world- class leading licensor with state-of-the-art intellectual property for the development of world- scale chlor-alkali plants.

The Chief Executive Officer of INA, Ridha Wirakusumah, said, “We are thrilled to join forces with Chandra Asri, Indonesia's largest integrated petrochemical producer, as we embark on this strategic partnership. This collaboration aligns perfectly with our prioritized investment theme to support the downstreaming of the nickel value chain – a critical component for the development of the electric vehicle industry. By working together, we aim to significantly reduce Indonesia's import dependencies of Caustic Soda and bolster our nation's economic resilience. Chandra Asri's market leadership and demonstrated expertise make them an ideal partner for INA to execute this project. This partnership is a testament to our shared commitment to fostering a sustainable and prosperous future for Indonesia."

The President Director and CEO of Chandra Asri, Erwin Ciputra, said, "This downstream asset investment is in line with our core strategy of achieving transformational growth via CAP 2, our second world-scale petrochemical complex. As a core component of the total CAP 2 portfolio package, this chlor-alkali plant will help meet Indonesia and South-East Asia’s growing needs for caustic soda and EDC. We are delighted to explore this opportunity with INA that will reduce Indonesia’s imports and boost the nation’s exports, in a meaningful and sustainable way.”

Caustic soda is a critical input for Indonesia’s growing downstream industries, such as alumina extraction, nickel extraction, water treatment, textile production, pulp and paper production, as well as soap and detergent production. Ethylene Dichloride is a core intermediary chemical input to produce polyvinyl chloride (PVC), which is widely used in numerous end-use applications including construction and packaging.

This investment clearly supports Indonesia’s ambitions as one of the world's largest nickel producers, to position itself in the global electric vehicle value chain to meet the growing needs for caustic soda, as growing worldwide electric vehicle adoption will drive demand for nickel, a key battery material.

News Comment

Today's Industry

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…

President Jokowi and Secretary-General of the United Nations António Guterres, Jakarta, Thursday (09/07). (Photo by: BPMI).

Senin, 11 September 2023 - 07:45 WIB

ASEAN, UN to Enhance Cooperation in Maintaining Regional Peace

On the margin of the 43rd ASEAN Summit, President Joko “Jokowi” Widodo Thursday (09/07) hosted Secretary-General of the United Nations António Guterres in a bilateral meeting at the Kakatua…

President Jokowi shakes hands with PM of Japan Fumio Kishida at JCC in Jakarta, Thursday (09/07). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 06:40 WIB

Indonesia, Japan Agree to Raise Partnership Status to Comprehensive Strategic

Indonesia and Japan have agreed to raise the partnership status of the two countries to strategic comprehensive, President Joko “Jokowi” Widodo has said.