Jakarta. Chandra Asri Pacific (TPIA) is ramping up the integration of its energy, chemical, and infrastructure businesses to be a leading player in Southeast Asia. 

The world is witnessing a changing industrial landscape, energy price volatility, and the need to further integrate the regional supply chain. Domestic opportunities remain wide open, as Indonesia still imports half of its national petrochemical needs despite a demand growth that is topping the global average. 

This gap provides a strategic foundation for TPIA to strengthen production capacity, encourage import substitution, and create added value, including job opportunities domestically.

Recognized as a key player in the national petrochemical industry, TPIA is now expanding its business scope by strengthening an integrated ecosystem encompassing the chemical, energy, and infrastructure sectors. This model is designed to build a more robust business structure, deepen vertical and horizontal integration, create cost efficiencies and supply security, and expand economic impact through direct and indirect job creation.

Chandra Asri Group's Director of Human Resources & Corporate Affairs Suryandi recently said that this is part of the company’s growth strategy.

"The bottom line is how we can build a mutually reinforcing ecosystem in the energy, chemical, and infrastructure sectors, as a single, reliable entity ready to compete in Southeast Asia. With a track record of consistent growth, we have grown from local roots to become the fourth-largest petrochemical company in Southeast Asia," Suryandi said.

Suryandi added that the company projects significant acceleration in production capacity. From approximately 4.2 million tons in 2024, TPIA's integrated capacity is projected to increase to more than 21 million tons by 2027, a nearly fivefold increase in line with the company's asset expansion and regional integration efforts.

TPIA is also integrating its assets in Indonesia and Singapore to optimize feedstock, production, utilities, and logistics end-to-end while expanding regional market access.

Chandra Asri Group's Director of Legal, External Affairs & Circular Economy, Edi Riva'i, said that the development of a cross-border ecosystem network was carried out to ensure the efficiency of the value chain from upstream to downstream. 

"This integration enables a more effective and efficient production flow, enabling sustainable business growth. At the same time, this expansion also opens up new job opportunities and encourages the competency of national talent," Edi explained.

TPIA is also developing a strategic Chlor Alkali & Ethylene Dichloride (CA-EDC) Plant project to strengthen domestic chemical supplies and support import substitution. This project has reached over 50% completion and is targeted to produce 400 KTA of caustic soda and 500 KTA of EDC. 

The construction of this facility also strengthens industrial resilience and the independence of the national chemical supply.

Through caustic soda import substitution and the potential export of EDC to Southeast Asian markets, the CA-EDC project is projected to create economic value of approximately Rp 10 trillion per year. 

This project is expected to employ up to 3,250 workers during the construction and operational phases, creating a multiplier effect for supporting industries and MSMEs in the surrounding area.

The company has established Chandra Asri Sentral Solusi (CASS), an integrated back-office service center. CASS is currently focused on supporting Aster's operations and is expected to expand its services to external parties in the future. By next year, the CASS development is projected to employ around 200 workers as capacity and service coverage increase.

Through its transformation and expansion, TPIA is strengthening its regional position while also supporting the national downstreaming agenda, reducing dependence on imports, and providing a multiplier effect for the domestic industry.

M Nafan Aji Gusta Utama, senior market analyst at Mirae Asset Sekuritas Indonesia, also commended TPIA's transformation, which is seen as expanding its business model from the petrochemical sector to become an integrated energy, chemical, and infrastructure solutions provider.

According to Nafan, this transformation effort has been well-received by market participants, as it has proven to have a positive impact on the company's overall performance. He highlighted TPIA's ability to record a significant rebound in 2025, with net profit surging dramatically compared to the previous period, which still recorded a loss.

Overall, the latest financial snapshot shows that TPIA has a market capitalization of approximately Rp 618.6 trillion, with a price-to-earnings ratio (PER) in the range of 28-29 times, higher than the industry average.

"With the transformation, TPIA has become more aggressive in making strategic acquisitions, such as Aster Chemicals and Energy Pte Ltd, as well as ExxonMobil's Esso gas station network in Singapore, and many others. This is certainly very positive from a market participant perspective," Nafan said.

Nafan also cautioned that despite its advantages, there are a number of challenges that need to be mitigated, including profit margins affected by fluctuations in global crude oil and chemical product prices, as well as the oversupply of the petrochemical industry from China, which has the potential to depress product selling prices.

"TPIA shares are often traded at price-earnings ratios (PER) and price-to-book value (PBV) that are well above the industry average, placing them in the premium valuation category. This makes the stock price vulnerable to corrections if the market's expected growth is not achieved on time," Nafan said.

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