Jakarta. Indonesia’s sovereign wealth funds, Daya Anagata Nusantara (Danantara) and the Indonesia Investment Authority (INA), are looking to invest in Chandra Asri Pacific's (IDX: TPIA) $800 million (Rp 13 trillion) chlor-alkali and ethylene dichloride (CA-EDC) plant.

The investment is aimed at strengthening Indonesia’s industrial resilience and reducing its reliance on chemical imports. The new plant will be managed by Chandra Asri Alkali (CAA), a subsidiary of the petrochemical giant, and marks the first phase of a larger strategy to boost domestic chemical production capacity.

“This project is a major milestone in our efforts to support national industrial resilience and economic growth,” Chandra Asri President Director Erwin Ciputra said in a statement on Tuesday. “The involvement of Danantara and INA reflects strong investor confidence in Indonesia’s chemical industry potential.”

The CA-EDC facility will have 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. A portion of the ethylene dichloride output will be exported, potentially generating up to Rp 5 trillion in foreign exchange per year.

The plant is also expected to significantly cut Indonesia’s dependency on imported caustic soda, with projected savings of up to Rp 4.9 trillion annually. Caustic soda is a critical input across multiple industries, including water treatment, soap and detergent manufacturing, alumina refining, and nickel processing.

Danantara’s Chief Investment Officer Pandu Sjahrir said the investment aligns with Indonesia’s national development priorities, particularly in sectors critical to energy transition and advanced manufacturing.

“This strategic partnership enhances national resilience by reducing import dependency on key chemical inputs like caustic soda and ethylene dichloride,” Pandu said. “At Danantara, we welcome global partners who share our vision to build a strong, high-value industrial ecosystem amid Asia’s evolving economic landscape.”

The plant is currently in its first construction phase, with long-term plans likely to include expanded production capacity and further downstream integration.

The move highlights a broader push by Indonesia to localize key industrial inputs, particularly in sectors linked to its energy transition goals, such as nickel processing and alumina refining, both of which rely heavily on chemical materials like those to be produced at the new CA-EDC plant.

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