Jakarta. Petrochemical giant Chandra Asri Group, also known by its ticker symbol TPIA, is currently in the process of diversifying its business in the chemicals and infrastructure sector.

TPIA boasts over 31 years of operating as Indonesia’s only facility for naphtha crackers, styrene monomer, butadiene, methyl tert-butyl ether (MTBE), and butene-1. The company boasts core infrastructure assets such as energy facilities, water processing, and jetty & tank.

For 2024, TPIA has prepared up to $400 million in capital expenditure (capex). About $300 million will go into building a world-class integrated chlor-alkali and ethylene dichloride (CA-EDC) plant.

“The plant will take up to 28 months to construct. Once it is done, the plant is set to contribute positively to Chandra Asri's margin,” Suryandi, the director for human capital and corporate affairs, said Wednesday.

According to Suryandi, Indonesia is still importing petrochemical goods. This is why Chandra Asri plans to optimize its production capacity. As for this year’s revenue, the company will likely record something similar to what it recorded in 2023.

Chandra Asri Group is now seeking the infrastructure industry to strengthen its performance. Unlike the more stable infrastructure sector, the petrochemical industry tends to fluctuate as it is affected by supply and demand. This business diversification is to be a boon for the company in case the petrochemical business performance declines.

Edi Rivai, the company’s legal and external relations director, said that TPIA’s business diversification in the infrastructure sector could bring new revenue opportunities with an investment worth approximately $850 million.

“Hopefully, we can meet the demand in the electric vehicle industry, particularly batteries. So Indonesia can reduce its import reliance on petrochemicals,” Edi said.

TPIA plans to begin constructing the chlor-alkali plant in the first or second quarter of 2024. TPIA also claimed it had up to $2 billion in cash to support its projects.

Chandra Asri Group, which considers itself a growth partner for Indonesia, has partnered with world-class institutions, namely Barito Pacific, SCG Chemical, Thaioil, Saligroup, Michelin, Krakatau Steel, Posco, and EGCO Group. TPIA has acquired Krakatau Steel’s subsidiaries as it holds 70 percent of Krakatau Daya Listrik’s shares. It also holds a 49 percent share in Krakatau Tirta Industri. Chandra Asri Group and Indonesia Investment Authority have also signed a memorandum of understanding on the chlor-alkali plant. Chandra Asri has also raised Krakatau Chandra Energi’s stake in Krakatau Posco Energy to 45 percent.