Jakarta. Chandra Asri Pacific (Chandra Asri Group), a leading energy, chemicals, and infrastructure solutions provider in Southeast Asia, said its subsidiary Chandra Asri Alkali (CAA) has completed 72% of construction on its Chlor Alkali and Ethylene Dichloride (CA-EDC) facility, a strategic project valued at more than $800 million.

The company expects the facility to begin commercial operations in 2027.

As construction progresses, Chandra Asri has also initiated a feasibility study for the project's second phase as part of its long-term strategy to expand production capacity. The expansion is estimated to require an additional investment of around $1 billion, reinforcing the company's commitment to supporting Indonesia's chemical industry with more reliable and competitive supplies of strategic raw materials.

Beyond strengthening domestic industrial resilience, the CA-EDC project is also expected to generate broader economic benefits through job creation and support for local businesses. Around 3,000 workers have been involved during the construction phase, while the completed facility is expected to create about 250 jobs.

"The progress of the CA-EDC facility reflects Chandra Asri's commitment to strengthening the foundation of Indonesia's chemical industry," said President Director and CEO of Chandra Asri Group Erwin Ciputra.

"Through the Phase II feasibility study and the development of supporting infrastructure, we aim to build a more integrated production and distribution ecosystem that enhances the reliability of basic chemical supplies for domestic industries while strengthening Indonesia's position in the regional supply chain," he added.

Once operational, the CA-EDC facility is expected to improve the reliability of caustic soda supply for a wide range of industries while reducing Indonesia's reliance on imports. The plant's annual liquid caustic soda output could replace up to 827,000 tons of imports worth about $293 million (Rp 4.9 trillion). Meanwhile, EDC production will be exported, with potential export revenues reaching as much as $300 million (Rp 5 trillion) per year.

Through the development of the CA-EDC facility and its supporting infrastructure, Chandra Asri Group said it aims to strengthen Indonesia's chemical industry by expanding the domestic supply of strategic basic chemicals while building a more integrated, competitive, and sustainable industrial ecosystem.