Jakarta. Chandra Asri Group (TPIA) is seeking to become a leading petrochemical producer in the country as a means to help Indonesia’s economic growth.

Chandra Asri Group’s corporate communications director Suryandi recently revealed the company’s strategy for 2024 at a media workshop in Bandung. According to Suryandi, TPIA is currently transforming to be a leading chemical and infrastructure solution in Indonesia.

“We wish to be a reliable growth partner. Chandra Asri Group has become the backbone of Indonesia’s petrochemical sector,” Suryandi said.

In 2024, TPIA has prepared up to $400 million in capital expenditure. About $300 million will go into building a world-class, integrated chlor-alkali and ethylene dichloride (CA-EDC) facility. The project will take up to 28 months to construct. Suryandi added: “Once its construction is done, it is set to give a positive contribution to Chandra Asri’s margin.”

According to Putu Nadi Astuti, the chemical industry director at the Industry Ministry, the petrochemical industry often becomes a benchmark for whether a country can be classified as an advanced economy.

“The petrochemical industry is one of the national industry pillars that we need to further build. We need to bolster both the upstream and downstream sectors to meet domestic needs such as food, clothing, and shelter,” Putu said.

According to Putu, the upstream sector of the chemical industry is capital-intensive, as it requires operations of advanced technologies. The upstream chemical sector has also witnessed a 38.04 percent growth in its investments. 

The Industry Ministry also laid out its plans to strengthen the upstream chemical sector via investments. To this end, Indonesia seeks to improve the industry’s competitiveness, boost market access, and protect the domestic industry, to name a few. The local content policy is also expected to attract investments into the country.

“Considering our demographic dividend, coupled with a robust domestic market, Indonesia seeks to escape the middle-income trap to be an advanced economy by 2036,” Putu said.