Indonesia’s sovereign wealth fund Danantara Indonesia and the Indonesia Investment Authority (INA) have reportedly signed a Conditional Share Subscription Agreement (CSSA) to jointly invest $200 million in Chandra Asri Group’s chlor-alkali-EDC (CA-EDC) chemical plant. The agreement is reported to follow up on a memorandum of understanding (MOU) signed in 2025.
The investment target is the chlor-alkali-EDC (CA-EDC) plant being developed by PT Chandra Asri Alkali (CAA), a Chandra Asri Group subsidiary, in Cilegon, Banten Province, Indonesia. Phase 1 capacity is reported at 400,000 tons per year of caustic soda and 500,000 tons per year of ethylene dichloride (EDC), with a target start-up in 2027. The applied process technology or licensor has not been identified.
The joint investment by Danantara and INA totals $200 million, while the CA-EDC project’s total investment is reported at approximately $800 million. The agreement was announced on March 3, 2026, converting the MOU signed in June 2025 into a binding formal investment agreement.
Chlor-alkali-EDC facilities supply key raw materials for downstream industries such as Polyvinyl Chloride (PVC). The investment is reported to reflect efforts by the Indonesian government and its sovereign wealth funds to raise domestic self-sufficiency in chemical feedstocks.
Implications for Korea’s Industry
As the regional chlor-alkali and PVC feedstock supply chain in Southeast Asia expands, it is reported that Korean PVC and EDC producers would benefit from continued monitoring of changes in regional feedstock supply structures.
Whether the 2027 start-up target is achieved and whether additional expansion plans are announced following Phase 1 are cited as key points to watch.