Strategic Alliance Eyes Massive Chlor-Alkali Plant in Indonesia’s Energy Push

🤝 A New Wave of Investment Collaboration

Danantara Indonesia and INA have entered into a Memorandum of Understanding (MoU) with PT Chandra Asri Pacific Tbk, marking the beginning of a potential large-scale investment. This partnership, publicly disclosed on Tuesday (June 17) via a joint statement cited by Reuters, is aimed at exploring entry as equity partners in Chandra Asri’s next big venture.

🏭 The Project: Chlor-Alkali and Ethylene Dichloride Plant

The proposed facility will be developed under a subsidiary of Chandra Asri and is set to become a cornerstone in Indonesia’s industrial advancement.
Key specs include:

• 400,000 tons of solid caustic soda per year

• 500,000 tons of ethylene dichloride annually

These materials are crucial for multiple downstream industries — from water treatment and pulp & paper to PVC manufacturing and advanced chemical processing.

💰 Funding Commitment of US$800 Million

The total investment is projected to reach up to US$800 million, or roughly IDR 13 trillion, a significant injection of capital that signals growing investor confidence in Indonesia’s industrial potential.

By involving two major sovereign-backed entities, the project benefits from not only capital, but also institutional strength and long-term vision.

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As Indonesia accelerates toward becoming a regional energy and manufacturing hub, partnerships like this underline the country’s serious commitment to building modern, resilient industrial infrastructure. This isn’t just a one-off project — it’s a signal of what’s to come.

Satra Sinar Abadi Group

Two of Indonesia’s key investment arms, Danantara Indonesia and the Indonesia Investment Authority (INA), are joining forces with petrochemical leader PT Chandra Asri Pacific Tbk (TPIA) in a groundbreaking collaboration. The objective? A world-class chlor-alkali and ethylene dichloride production facility backed by up to US$800 million in funding.