Danantara and INA close investment in Chandra Asri’s Indonesian chemical plant
The roughly US$800m Cilegon project follows a US$200m joint investment agreement and targets commercial operations in 2027.
Danantara Investment Management and Indonesia Investment Authority have completed their investment transaction with Chandra Asri Group for a chemical plant in Cilegon, Banten, Indonesia. The chlor-alkali and ethylene dichloride project, known as CA-EDC, follows a March agreement for the two investors to jointly invest US$200 million in the facility, then valued at approximately US$800 million.
The partners announced transaction completion on 15 October. The March commitment was made under a conditional share subscription agreement. The October announcement does not state the amount paid at closing or the final ownership shares.
The March agreement followed an earlier memorandum of understanding among the three partners. Danantara and INA took the role of strategic investors, with the funding allocated to the facility managed by PT Chandra Asri Alkali, a Chandra Asri subsidiary. The plant in Cilegon, Banten, is part of Indonesia’s National Strategic Projects programme, according to the March announcements.
The investment milestone comes before completion of the plant. Construction was approximately 80% finished in September 2026, according to the joint announcement. Main equipment was being installed, while the jetty, trestle and storage facilities were still being developed.
The Cilegon facility is designed to produce about 400,000 tonnes of caustic soda and 500,000 tonnes of ethylene dichloride a year, with commercial operations targeted for 2027. Caustic soda is used in alumina refining, paper manufacturing, and soap and detergent production. Ethylene dichloride supplies raw material for the construction and packaging industries.
The companies expect domestic production to reduce reliance on imported chemicals and improve the availability of raw materials for downstream industries. Those benefits depend on the facility entering operation.
Chandra Asri chief executive Erwin Ciputra said the project is expected to support approximately 3,000 construction jobs and 250 permanent operational positions. The company is developing the chlor-alkali and ethylene dichloride facility in Cilegon, adding to a chemical and infrastructure portfolio that already includes operations in Indonesia and Singapore.
Source: Danantara, INA and Chandra Asri’s 15 October 2026 completion announcement; Chandra Asri’s 3 March investment announcement; and Danantara’s 3 March agreement announcement.
