Danantara, INA and Chandra Asri back USD 800m CA‑EDC plant in Cilegon
- Total project value USD 800 million for a CA‑EDC plant in Cilegon, designated a National Strategic Project.
- Danantara Indonesia and INA will jointly invest USD 200 million via PT Chandra Asri Alkali to fund development; operations targeted in 2027.
- First‑phase annual capacity set at 400,000 tonnes of Caustic Soda and 500,000 tonnes of Ethylene Dichloride.
- Construction will create about 3,000 jobs and operations about 250 jobs; EDC output could support exports and foreign‑exchange earnings.
Deal and parties
Danantara Indonesia, the Indonesia Investment Authority (INA), and Chandra Asri Group signed a Conditional Share Subscription Agreement to advance the Chlor Alkali–Ethylene Dichloride (CA‑EDC) project in Cilegon. The CSSA follows an earlier memorandum of understanding and marks the capital‑commitment phase with Danantara and INA acting as strategic investors.
Financing and structure
The project carries a total value of USD 800 million and is classified as a National Strategic Project. Danantara Indonesia and INA will invest a combined USD 200 million in the facility, which is being developed and operated by Chandra Asri Group through its subsidiary PT Chandra Asri Alkali (CAA).
Capacity, schedule and jobs
The CA‑EDC plant’s first phase targets annual production of 400,000 tonnes of Caustic Soda and 500,000 tonnes of Ethylene Dichloride, and is targeted to commence operations in 2027. The construction phase is expected to create roughly 3,000 jobs and operations about 250 jobs.
Strategic objectives
The project aims to reduce import dependency for critical raw materials, strengthen domestic supply resilience, and advance downstream industrialisation. Increased EDC output is expected to support domestic industrial demand and has potential to boost exports and foreign‑exchange earnings, reinforcing the competitiveness of Indonesia’s chemical sector.