Jakarta. PT Chandra Asri Pacific Tbk (IDX: TPIA), or Chandra Asri Group, recently reported strong liquidity to support its future operations as the company’s cash and cash equivalents reached $1.2 billion. 

“As of Sep. 30, Chandra Asri Group reported a strong liquidity pool of $2.3 billion. About $1.2 billion are cash and cash equivalents. Some $800 million others are in securities. We also have available committed revolving credit facilities worth a total of $300 million, “ Chandra Asri Group’s Director Suryandi said. 

According to Suryandi, the company has also reaffirmed its commitment to driving the national economy by acquiring Shell Energy and Chemicals Park (SECP). The profit made from this project is expected to reach between $8 billion and $10 billion. This acquisition is also set to bolster Indonesia’s energy security and support the chemical sector and domestic infrastructures to ensure a reliable supply of key products: gasoline, jet fuel, ethylene, and polyethylene.

TPIA’s decision to expand to other ASEAN countries aligns with the company’s goal of becoming a leading energy, chemical, and infrastructure solution provider. Chandra Asri Group seeks to increase its global presence by taking advantage of the ASEAN market -- a region that is expected to grow 4.5 percent this year, and have its gross domestic product (GDP) valued at around $4.5 trillion in 2030. 

"Collaboration with Glencore and the acquisition of SECP not only strengthen Indonesia's position in the global market but also encourage innovation. This will boost the company’s competitiveness in the energy and chemical sector and contribute to national economic growth," Suryandi said.

In the January-September 2024 period, TPIA recorded positive earnings before interest, taxes, depreciation, and amortization (EBITDA) of $41.6 million despite challenging global market conditions. In Q3-2024, TPIA also completed its turnaround maintenance which temporarily affects operational capacity. Despite the impact, the maintenance seeks to improve overall efficiency and profitability in the long term. This will eventually make TPIA even more competitive in the market. 

"By optimizing processes and improving facilities during this maintenance period, Chandra Asri Group is strategically positioning itself to achieve greater operational resilience and better performance in the future," Suryandi said.

TPIA is also reported to have improved its ESG (environmental, social, and governance principles rating. The company secured a BBB rating from MSCI. It also reduced its risk score from 16.6 to 16.3, according to Morningstar Sustainalytics. This improvement puts TPIA among the leading companies in the global chemical industry. This has granted TPIA greater access to sustainable financing, including sustainability-linked loans.

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