Chandra Asri Group to Build CA-EDC Plant in Cilegon as National Strategic Project
Chandra Asri Pacific Tbk (Chandra Asri Group) announces its readiness to develop a Chlor-Alkali-Ethylene Dichloride (CA-EDC) Plant in Cilegon, Banten, following its designation as a National Strategic Project (PSN), which will contribute to Indonesia’s long term sustainable economic growth.
President Director & CEO of Chandra Asri Group, Erwin Ciputra, stated. “We are grateful for the Government’s strong support in designating the CA-EDC plant as a National Strategic Project.
This recognition reflects our shared commitment to accelerating development and aligns with our promise as a Growth Partner. We aim to contribute to Asta Cita by promoting the downstream of industries and reducing our reliance on imported chemicals through the development of the CAEDC plant.”
The company has secured key permits, including the Environmental Impact Assessment (AMDAL) from the Ministry of Environment (KLH) and the Building Permit (PBG), both of which are crucial for moving forward with the project development.
“We hope that the development of the CA-EDC Plant will run smoothly with support from all parties to help achieve 8% economic growth and play a role in creating job opportunities in Indonesia,” said Erwin.
Previously, President of Indonesia Prabowo approved the National Strategic Projects (PSN) for the next five years, formalized through Presidential Regulation No.12 of 2025, which outlines the National Medium-Term Development Plan (RPJMN) 2025-2019, signed on February 10, 2025.
The PSN consists of strategic projects and programs that are designed to be measurable and impactful in achieving the RPJMN objectives, particularly in advancing Presidential Priority Program. The focus is on enhancing human resource quality, reducing poverty, fostering sustainable economic growth, and promoting equitable development.
Out of the 77 PSNs to be implemented over the next five years, nearly half will involve partnership with the private sector or be entirely prove sector driven. One of the PSNs identified by the Government is the CA-EDC Plant, which is being developed by Chandra Asri Group.
The CA-EDC plant project is set to attract an investment of IDR 15 trillion and will be operated by Chandra Asri Group’s subsidiary, PT Chandra Asri Alkali (CAA). The plant will have an annual production capacity of 400,000 tons of caustic soda and 500,000 tons of EDC.
Caustic soda is extensively used in alumina and nickel refining processes, especially in the production of electric vehicle (EV) battery components and is also essential in the pulp and paper industry, as well as in household goods manufacturing. On the other hand, EDC is a critical raw material to produce Polyvinyl Chloride (PVC), which is widely used in the construction sector, particularly for plastic pipes.
Chandra Asri Group has signed a technology licensing agreement with Japan’s Asahi Kasei Corporation (AKC) for the CA plant, and licensing, basic engineering, and technical services agreements with a leading US vinyl technology licensor to develop the Ethylene Dichloride (EDC) plant.
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