Jakarta. Chandra Asri Group, a leading producer of energy, chemical and infrastructure solutions, recently partnered with Inti Karya Persada Tehnik (IKPT) to boost its butene-1 (B1) and methyl tert-butyl ether (MTBE) compounds production. 

The two companies linked an engineering, procurement, and construction contract in Jakarta earlier this week. The expansion would produce Chandra Asri Group’s B1 and MTBE production by over 25 percent. Chandra Asri Group began producing these two compounds in its Ciwandan facility in 2020. B1 is a mainstay ingredient in the production of polyethylene. The MTBE facility produces octane boosters for benzene to meet the domestic demand. Its output also helps to cut import reliance, and serve the export markets. IKPT has taken part in the construction of the B1-MTBE manufacturing facilities.

“The signing of this contract marks a strategic step for the company to become a ‘growth partner’. The additional capacity would allow us to not only become a major player in the domestic petrochemical industry, but also to contribute to the national economic growth,” Chandra Asri Group Vice President Director of Operations, Pholavit Thiebpattama said.

Chandra Asri Group also hopes to continue to provide innovative and sustainable solutions to support the petrochemical sector and create added value to the country.

As part of the deal, IKPT will help Chandra Asri Group to ensure the successful implementation of this project, adhering to the highest quality and safety standards. The project is expected to be completed within 12 months. 

“The B1-MTBE plant expansion is part of Chandra Asri Group’s strategy to support the Indonesian government in developing the downstream industry. We are proud to be involved in this crucial project. We will do our best by completing the project on time while also paying attention to the quality and safety,” IKPT’s President Director, Atsushi Yoshihara said.