Jakarta. Southeast Asian chemical giant Chandra Asri Group announced Monday that it had raised its Methyl Tert-Butyl Ether (MTBE) and Butene-1 (B1) plant capacity by up to 25%.

The company expects the move to help Indonesia cut imports of the said materials, thereby improving foreign exchange efficiency. Higher output of these key raw materials will also boost domestic value creation and strengthen the country’s national petrochemical industry.

Chandra Asri partnered with Inti Karya Persada Teknik to expand the facility under an engineering, procurement, and construction (EPC) contract signed in December 2024. The plant is located within Chandra Asri’s petrochemical complex in Cilegon. The facility has been in operation since 2020. 

The plant is already running at a higher capacity following a series of technical and operational preparations, including trial runs conducted late last month. This expansion cements Chandra Asri Group’s role as Indonesia’s only domestic producer of MTBE and Butene-1. It also supports the availability of strategic raw material supplies for various domestic industrial sectors.

“This capacity increase represents a strategic step by Chandra Asri Group to strengthen the supply resilience of industrial raw materials in Indonesia. As the sole producer of MTBE and Butene-1 in the country, we are committed to supporting reliable supply availability,” Chandra Asri Group President Director Erwin Ciputra said.

“Through this production capacity enhancement, Chandra Asri Group not only supports import substitution efforts but also contributes to building a stronger, more competitive, and sustainable petrochemical value chain,” Erwin said.

This facility is also expected to open up opportunities for Indonesia to gain a foothold in the regional petrochemical supply chain. 

MTBE is a key component used as an octane booster in gasoline to improve combustion quality and fuel efficiency. Butene-1 is an important comonomer used in polyethylene production, a mainstay ingredient widely applied across various industries, including manufacturing, packaging, and consumer products. With higher production capacity, the company not only strengthens domestic supply chain stability but also opens opportunities to expand regional market penetration through exports of high-value-added products.