Danantara, INA invests US$200 million to Chandra Asri's CA-EDC project

Daya Anagata Nusantara (Danantara) Investment Management Agency and the Indonesia Investment Authority (INA) have invested US$200 million, equivalent to Rp3.37 trillion (assuming an exchange rate of Rp16,868 per US$1), in the petrochemical project of PT Chandra Asri Pacific (Chandra Asri Group). The investment was formalized through the signing of a Conditional Share Subscription Agreement (CSSA) between Danantara, INA, and Chandra Asri Group.

The agreement marks the capital commitment phase to support the construction of the chloralkali–ethylene dichloride (CA-EDC) plant in Cilegon City, Banten Province, which is being developed and operated by Chandra Asri Group through its subsidiary PT Chandra Asri Alkali (CAA). Under the agreed investment structure, Danantara and INA will jointly invest US$200 million. The CA-EDC is valued at US$800 million or about Rp13.39 trillion. The petrochemical national strategic project (PSN) is scheduled to begin operations in 2027.

Danantara Chief Investment Officer Pandu Sjahrir stated that the agreement affirms Danantara's commitment to strengthening national strategic industries that provide high added value, create jobs, and accelerate Indonesia's economic growth.

"This collaboration is not only a response to the challenge of import dependence, but also a concrete step to accelerate downstreaming, a key driver of the Indonesian economy," Pandu said in an official statement on Mar. 3, 2026.

Acting INA CEO, CFO, and Chief Risk Officer Eddy Porwanto stated that the investment reflects INA's long-term mandate to mobilize capital in national priority sectors. He added that the collaboration between INA and Danantara as long-term investment partners aims to build a strong capital foundation to support the sustainable development of the strategic raw materials industries.

"This effort is expected to encourage downstreaming, increase domestic added value, and strengthen the competitiveness and resilience of the national industry," said Eddy.

Meanwhile, Chandra Asri Group President Director and CEO Erwin Ciputra welcomed the participation of Danatara and INA as strategic investment partners in the CA-EDC project.

"This support reflects our confidence in Chandra Asri Group's capabilities in developing this facility," he said.

Chandra Asri Group expects that the CA-EDC project will significantly reduce dependence on imports of strategic chemicals, strengthen the resilience of the national supply chain, and support downstreaming. Furthermore, Erwin stated that the facility's construction and operation  will also create new job opportunities for 3,000 workers during construction and 250 workers during operation, as well as provide a sustainable impact for the community and industry in Cilegon City and its surrounding areas.

In the first phase, the CA-EDC plant is targeted to have an annual production capacity of 400,000 tons of dry caustic soda and 500,000 tons of EDC. This facility is being developed with high technological and industrial safety standards to ensure operational efficiency, supply reliability, and adherence to sustainability principles. Caustic soda is used as a raw material in the soap and detergent production process, aluminium refining, and papermaking. EDC is a key raw material for the construction and packaging industries.

The presence of domestic caustic soda production capacity is expected to significantly strengthen import substitution and domestic supply security. EDC production is also expected to both support domestic industrial needs and has the potential to increase exports, contribute to Indonesia's foreign exchange earnings, and strengthen the national chemical industry's competitiveness.