Jakarta. PT Chandra Asri Pacific Tbk, a prominent provider of energy, chemical, and infrastructure solutions in Indonesia, is identifying its potential contributions to national interests through its partnership with Glencore plc in the acquisition of Shell Energy and Chemicals Park (SECP) in Singapore.

Chandra Asri Group and Glencore have signed a purchase agreement with Shell Singapore Pte. Ltd. to acquire full ownership of SECP, which is subject to regulatory approval, with the acquisition expected to be completed by the end of 2024.

Erwin Ciputra, President Director & CEO of Chandra Asri Group, stated that every business decision made by the company aims to benefit Indonesia.

"Chandra Asri Group is committed to being a growth partner for Indonesia. The strategic move to acquire SECP assets is one of our contributions to the development of the domestic industry and the Indonesian economic growth. Further, this acquisition aligns with Chandra Asri Group's growth strategy of going global, expanding our business in the energy, chemical, and infrastructure sector not only in Indonesia but also overseas," he said.

This corporate action aims to support Indonesia in enhancing energy resilience and meeting the increasing demand for chemical products. Through SECP, which is one of the largest oil refineries and trading hubs in the world, Chandra Asri Group will source petroleum products, including gasoline, jet fuel, gas oil, and bitumen to support various industries in Indonesia.

Additionally, Chandra Asri Group will help fill gaps in the supply of chemical products, such as MEG, polyols, ethylene, propylene, and styrene monomers, to support manufacturing processes in the country. This will ensure that the country’s energy supply is secured as well as reduce dependencies on foreign entities.

“This acquisition is expected to have a positive impact on Indonesia's economy. Profits generated from SECP will be repatriated and reinvested for the domestic industry’s development, contributing significantly to national tax revenues from both corporate and individual taxes," Erwin explained. 

Erwin further said, "Additionally, the expansion will create new domestic job opportunities as a new company will be established to serve as SECP’s back-end. This operation will streamline processes, improve efficiency, and generate employment across various sectors. By focusing on operational excellence and innovation, the new company will strengthen the value chain, contributing to Indonesia’s economic growth and ensuring the benefits are felt throughout the community.”

The expansion of Chandra Asri Group in the ASEAN region is also crucial for increasing economic efficiency. With a projected Compound Annual Growth Rate (CAGR) of 4.5% in 2024 and a combined Gross Domestic Product (GDP) of approximately $4.5 trillion by 2030, ASEAN presents a significant opportunity for Indonesian businesses.

This growth rate indicates a robust and dynamic market where Indonesian companies can establish a stronger presence. By leveraging strategic partnerships, investing in innovative practices, and enhancing operational capabilities, Chandra Asri Group can effectively tap into the diverse markets within ASEAN. This expansion will contribute to the overall economic development of Indonesia, enabling Chandra Asri Group to compete more effectively in the global marketplace.

Beyond economic aspects, this partnership is also expected to foster collaboration and knowledge sharing through the cross-fertilization of best practices. SECP possesses advanced technology and innovations, operated by experienced professionals, which will facilitate knowledge and technology transfer.

In return, Chandra Asri Group, with over 32 years of manufacturing experience, can contribute valuable insights and operational expertise to strengthen both parties. The exchange of best practices between SECP and Chandra Asri Group will enable both companies to optimize their processes and capabilities.

Additionally, collaboration with Glencore, one of the world's leading natural resource companies, will further drive innovation, ensuring that the partnership remains competitive in the global market. This synergy is also anticipated to enhance Indonesia's position on the global stage, demonstrating the nation's ability to lead in cutting-edge industrial practices.