Jakarta. A chemical plant being developed by  Chandra Asri Pacific  is expected to begin commercial operations in 2027, following the completion of a strategic investment transaction involving Danantara Investment Management (DIM) and Indonesia Investment Authority (INA).

The Chlor Alkali–Ethylene Dichloride (CA-EDC) project is designed to produce 400 kilotonnes per annum (KTA) of caustic soda and 500 KTA of ethylene dichloride (EDC), chemicals widely used in industrial processes. The facility is expected to strengthen domestic supplies and reduce Indonesia’s dependence on imported chemicals.

Caustic soda is particularly relevant to Indonesia’s growing bauxite and alumina industries, where demand for the chemical is expected to increase. Greater domestic production could help meet the needs of downstream manufacturers, generate foreign exchange savings and strengthen local industrial supply chains.

The investment partnership brings together DIM’s and INA’s financing capabilities with Chandra Asri Group’s industrial expertise. Beyond expanding chemical production, the project is also expected to support the development of technical skills and operational capabilities within Indonesia’s chemical industry.

Construction had reached approximately 80% completion as of September 2026. Installation of the main equipment was underway, alongside the development of supporting infrastructure, including a jetty, trestle and storage facilities.

Pandu Sjahrir, chief executive officer of DIM, said the investment reflects the importance of directing capital toward industries that can strengthen Indonesia’s economic resilience while maintaining commercial viability.

“As Indonesia advances its downstream processing agenda, DIM plays a role in directing capital toward the sectors that underpin national economic resilience, while maintaining the commercial discipline our mandate requires. The CA-EDC project reflects the type of strategic investment that can generate long-term value for Indonesia by supporting domestic industries, building local capabilities, creating high-quality jobs and enhancing Indonesia’s competitiveness,” Pandu said.

He added that the partnership demonstrates Danantara’s role in attracting private investors to projects considered strategically important to the country.

Oki Ramadhana, CEO of INA, said the investment is supported by both the industrial importance of caustic soda and EDC and the project’s commercial fundamentals.

“The collaboration between INA, DIM and Chandra Asri Group on the CA-EDC project brings together investment capital and industrial expertise. The investment rationale rests on both the essential role that caustic soda and EDC play across Indonesia’s industrial value chain and the project’s sound commercial fundamentals,” Oki said.

He said the project could help secure domestic supplies of the chemicals as Indonesia expands its downstream industries, contributing to a more integrated industrial base.

Chandra Asri Group President Director and CEO Erwin Ciputra said the investment partnership would support the company’s efforts to strengthen the domestic supply of essential chemicals and advance Indonesia’s downstreaming ambitions.

“By combining DIM’s and INA’s long-term investment capabilities with Chandra Asri Group’s industrial expertise, we are advancing a project that will strengthen the security of critical chemical supplies for domestic industries, reduce reliance on imports and support Indonesia’s downstreaming ambitions,” Erwin said.

The project is expected to create approximately 3,000 construction jobs and 250 permanent operational positions. Its planned 2027 launch would mark a further step in developing Indonesia’s domestic chemical production capacity.

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