Jakarta. Chandra Asri Group announced Monday that the construction of its Chlor Alkali and Ethylene Dichloride (CA-EDC) Plant in Banten’s Cilegon had reached 33 percent in progress. 

Chandra Asri Group is a leading energy, chemicals, and infrastructure solutions provider in Southeast Asia. Its subsidiary PT Chandra Asri Alkali will operate the CA-EDC plant. So far, the project has already made some major progress, including land leveling, soil compaction, and the preparation for the jetty construction. This jetty will enable the company to easily distribute its products to meet both domestic and the Southeast Asian market demand. 

According to Chandra Asri Group, the next phase of construction will cover the foundation works, building structures, as well as installation of equipment and supporting infrastructure. Chandra Asri Group’s President Director & CEO Erwin Ciputra said that the company remained committed to make sure that the project would go according to plan to drive Indonesia’s chemical industry independence. 

“The achievement of this initial phase of construction lays a critical foundation while reaffirming our commitment to supporting the national downstream industry development. With the CA-EDC Plant, we aim to strengthen Indonesia’s position in the Southeast Asia market while creating sustainable economic value for the nation,” Erwin was quoted as saying in a press statement.

The project is currently in its first phase. This includes the construction of facilities with a production capacity of 400,000 tons of solid caustic soda per year (equivalent to 827,000 tons in liquid form) and 500,000 tons of ethylene dichloride. The plant is expected to reduce Indonesia’s reliance on imports of these two strategic chemicals, while also promoting industrial self-sufficiency. It also aligns with Indonesia’s goal of developing its downstream sectors.

The second phase will focus on expanding the chlor-alkali production capacity and developing chlorine-based products. A feasibility study is underway to find out other ways to create greater added value, improve efficiency, and strengthen the domestic chemical industry value chain.

The ethylene dichloride production will be dedicated for exports, with the potential to generate up to Rp 5 trillion in foreign exchange each year. The substitution of the caustic soda import is projected to save up to Rp 4.9 trillion annually.

The CA-EDC plant will also help supply raw materials for various domestic industries, including water treatment, soap and detergent manufacturing, alumina refining and nickel processing. By strengthening local supply chains and expanding export capacity, this development is expected to drive sustainable industrialization and enhance Indonesia’s global competitiveness, according to Chandra Asri Group.