Published on March 3, 2026, by Investor.id
By Thresa Sandra Desfika
JAKARTA, Investor.id – Danantara Indonesia, the Indonesia Investment Authority (INA), and Chandra Asri Group (TPIA), Prajogo Pangestu’s listed company, officially signed a conditional share subscription agreement (CSSA) to strengthen domestic Caustic Soda and Ethylene Dichloride (EDC) production capacity and improve domestic supply security.
This follows a memorandum of understanding (MoU) signed by Danantara Indonesia, INA, and PT Chandra Asri Pacific Tbk (Chandra Asri Group), where Danantara Indonesia and INA are strategic investors in the project.
This agreement marks the capital commitment phase to support the construction of a Chlor Alkali – Ethylene Dichloride (CA-EDC) plant in Cilegon, Banten, developed and operated by the Chandra Asri Group. This project aims to reduce dependence on imports for crucial raw materials for various industries, while simultaneously promoting downstreaming as part of a long-term economic transformation. The presence of domestic Caustic Soda production capacity is expected to significantly strengthen import substitution and domestic supply security.
Meanwhile, EDC production not only supports domestic industrial needs but also has the potential to increase exports, contribute to foreign exchange earnings, and strengthen the competitiveness of the national chemical industry.
The CA-EDC plant construction has a project value of US$800 million and is part of the National Strategic Project (PSN) focused on the production of essential raw materials for upstream and downstream industries.
Caustic soda is used as a raw material in the soap and detergent production process, alumina refining, and papermaking. EDC is a key raw material driving the construction and packaging industries.
Under the agreed investment structure, Danantara Indonesia and INA will jointly invest US$200 million. This funding will be used to build the CA-EDC strategic industrial facility, managed by PT Chandra Asri Alkali (CAA), a subsidiary of the Chandra Asri Group, and is scheduled to begin operations in 2027.
“This agreement affirms Danantara Indonesia’s commitment to strengthening national strategic industries that provide high added value, create jobs, and accelerate Indonesia’s economic growth,” said Danantara Indonesia Chief Investment Officer Pandu Sjahrir in an official statement quoted on Tuesday (March 3, 2026).
He continued, explaining that this collaboration is not only a response to the challenge of import dependence but also a concrete step to accelerate downstreaming, a key driver of the Indonesian economy.