Chandra Asri Invests $908 Million in World-Class Chemical Plant to Bolster Indonesia’s Industrial Sector

PT Chandra Asri Pacific (TPIA), a company under the control of Indonesian tycoon Prajogo Pangestu, is investing $908 million to build a world-class chemical manufacturing facility, slated for completion by 2027.

As part of its 2025 investment strategy, the petrochemical giant has allocated between $350 million and $400 million in capital expenditure toward the construction of a Chlor-Alkali and Ethylene Dichloride (CA-EDC) plant. The project is managed by its subsidiary, PT Chandra Asri Alkali (CAA).

According to Suriyandi, Director of Human Resources and Corporate Affairs at Chandra Asri Pacific Group, the new CA-EDC facility will strengthen the domestic downstream supply chain. The plant will produce essential base chemicals used in various industries, including textiles, pulp and paper, and water treatment.

“This project will generate a broad multiplier effect, helping to create jobs and enhance Indonesia’s industrial self-reliance,” Suriyandi stated in a release on Tuesday, May 6, 2025.

The strategic investment is part of the group’s broader initiative to reduce Indonesia’s dependence on imported raw materials and enhance the structural integrity of its national chemical industry.

The CA-EDC plant is designed with an annual production capacity of 400,000 tons of solid caustic soda (equivalent to 827,000 tons in liquid form) and 500,000 tons of Ethylene Dichloride (EDC). The plant is expected to reduce Indonesia’s caustic soda imports by approximately $302 million per year.

In addition, the entire EDC output will be exported, potentially generating up to $308 million in annual foreign exchange earnings. This will improve the country’s trade balance and contribute directly to national economic growth.

TPIA’s latest financial report shows robust performance, with net revenue reaching $622.1 million—an increase of 31.8% year-on-year. Revenue from the chemical segment rose by 32.5% to $592.6 million, while the infrastructure segment grew by 19.4% to $29.5 million, reflecting a recovery in supply and demand dynamics.

Despite increased production and sales, which led to higher raw material and utility costs, the company’s cost of sales climbed from $471.3 million to $616.3 million. Nevertheless, earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 1,870.2%, from $1.1 million to $21.7 million.