Jakarta. Chandra Asri Alkali (CAA), a subsidiary of Chandra Asri Pacific (Chandra Asri Group), has begun installing key equipment at its Chlor Alkali and Ethylene Dichloride (CA-EDC) facility, with construction reaching approximately 80% completion as of September 2026.

The facility, backed by an investment of more than $800 million, is progressing toward its targeted operational readiness in 2027. The latest milestone marks the transition from structural and supporting infrastructure development to the installation of core components required for production.

The installation covers several critical process components, including process vessels, heat exchangers, pumps, compressors and absorption towers, which will form the facility's production system. Meanwhile, construction of supporting infrastructure, including the jetty, jetty trestle and storage facilities, is also progressing to accommodate future logistics and product distribution once the facility begins operations.

Chandra Asri Group President Director and CEO Erwin Ciputra said the installation of key equipment marked an important milestone as the project advanced toward operational readiness.

"The CA-EDC project has now entered a significant phase with the commencement of the installation of various key equipment that will form the facility's production system. At this stage, our focus is on ensuring that every construction and installation activity proceeds according to plan while upholding the highest standards of safety, quality and facility reliability. We will continue to maintain disciplined project execution to support our target of achieving operational readiness in 2027," Erwin said.

Once operational, the CA-EDC facility will have an annual production capacity of up to 827,000 tons of liquid caustic soda and 500,000 tons of ethylene dichloride (EDC), supporting the chemical feedstock requirements of various domestic industries.

Caustic soda is widely used in industrial processes, including water treatment, soap and detergent manufacturing, as well as mineral processing and refining. Meanwhile, EDC is a key raw material in the polyvinyl chloride (PVC) production chain, which serves a range of industrial and infrastructure applications.

The facility is expected to strengthen Indonesia's domestic chemical supply chain, with caustic soda production potentially reducing reliance on imports and EDC production primarily directed toward export markets.

The project is projected to substitute up to approximately 827,000 tons of caustic soda imports annually, equivalent to around $293 million per year. Meanwhile, EDC production is expected to generate foreign exchange earnings of up to approximately $300 million annually.

Beyond its contribution to the chemical industry, the project has also supported economic activity in the surrounding area. Approximately 3,500 workers have been engaged across various stages of construction. Once the facility reaches full operation, it is expected to create around 250 new jobs to support ongoing operations.

Construction activities have also opened up opportunities for local businesses. A total of 34 micro, small and medium enterprises (MSMEs) from Warnasari and Samangraya villages are currently supplying food and beverages to workers through canteen facilities within the project area.

"The progress of the CA-EDC project demonstrates how a large-scale industrial development is being carried out in stages toward operational readiness. We hope that, once operational, this facility will deliver broader benefits through increased availability of chemical products for domestic industries, expanded export opportunities, and greater participation of local workers and businesses," Erwin concluded.

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