Industrial Supply Chain DIM, INA, Chandra Asri Complete Strategic Investment Transaction for CA-EDC Project

With an aim to strengthen Indonesia’s domestic industrial capacity, Danantara Investment Management, Indonesia Investment Authority, and Chandra Asri Pacific have recently completed a strategic investment transaction for the Chlor Alkali–Ethylene Dichloride project which is expected to produce approximately 400 KTA of caustic soda and 500 KTA of ethylene dichloride.

Jakarta/Indonesia – Danantara Investment Management (DIM), Indonesia Investment Authority (INA), and Chandra Asri Pacific (Chandra Asri Group) have completed a strategic investment transaction for the Chlor Alkali–Ethylene Dichloride (CA-EDC) project, marking a significant milestone in strengthening Indonesia’s domestic industrial capacity.

Led by Chandra Asri Group, the facility is designed to produce approximately 400 kilo tonnes per annum (KTA) of caustic soda and 500 KTA of ethylene dichloride (EDC), two essential chemicals used in a wide range of industrial applications. By increasing domestic production, the project is expected to reduce reliance on imports, generate foreign exchange savings, and improve the availability of critical raw materials for downstream industries, including Indonesia’s bauxite and alumina value chain, where demand for caustic soda is expected to grow.

The partnership brings together DIM’s and INA’s investment capabilities with Chandra Asri Group’s industrial expertise to advance this strategically important project. It also creates an opportunity to further develop specialized technical expertise and operational capabilities in Indonesia, supporting the growth of a stronger domestic chemical industry.

The project is in line with the growing momentum of Indonesia’s downstreaming agenda, which seeks to add value to the country’s natural resources and deepen domestic industrial supply chains. Its commercial rationale is further supported by existing underlying demand for caustic soda and EDC, providing a solid foundation for the project’s long-term viability.

As of September 2026, construction was approximately 80 % complete, with the main equipment being installed and supporting infrastructure, including the jetty, trestle, and storage facilities, under development. The project remains on track to commence commercial operations in 2027.

Pandu Sjahrir, Chief Executive Officer of DIM, said: “As Indonesia advances its downstreaming 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. This collaboration also reflects Danantara’s role as a catalyst in crowding in private investors into nationally strategic projects.”

Oki Ramadhana, CEO of INA, said: “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. As Indonesia advances its downstream industries, the project addresses a strategic need, with the potential to strengthen domestic supply and support the development of a more integrated industrial base.”

President Director and CEO of Chandra Asri Group, Erwin Ciputra, said: “The completion of this strategic investment partnership marks a significant milestone for the CA-EDC project and underscores our commitment to Indonesia’s industrial development. 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. With commercial operations targeted to commence in 2027, the project is also expected to create approximately 3,000 construction jobs and 250 permanent operational positions, while helping to build local industrial capabilities.”

The completion of this partnership represents a significant milestone for the CA-EDC project and demonstrates the shared commitment of DIM, INA, and Chandra Asri Group to supporting the long-term growth of Indonesia’s domestic industry.

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