2026-10-20
- It is reported that Danantara Investment Management (DIM), the Indonesia Investment Authority (INA) and Chandra Asri Group completed a strategic investment transaction for the Chlor Alkali-Ethylene Dichloride (CA-EDC) project, announced on 2026-10-19.
- Annual capacity is about 400,000 tonnes of caustic soda and 500,000 tonnes of ethylene dichloride (EDC), with Chandra Asri Group leading the project.
- Construction was about 80% complete as of September 2026, and commercial operations are targeted for 2027.
- At the Conditional Share Subscription Agreement (CSSA) signed on 2026-03-03, the joint investment by Danantara and INA was announced as US$200 million against a total project value of about US$800 million.
- About 3,000 jobs are expected during construction and about 250 permanent positions during operations.
According to industry reports published on 2026-10-19, Danantara Investment Management (DIM), the Indonesia Investment Authority (INA, Indonesia’s sovereign wealth fund) and PT Chandra Asri Pacific Tbk (Chandra Asri Group) have completed a strategic investment partnership for the CA-EDC project. The project is a chlor-alkali and ethylene dichloride (EDC) complex with annual capacity of about 400,000 tonnes of caustic soda and 500,000 tonnes of EDC. It is reported that Chandra Asri Group leads the project while DIM and INA contribute investment capabilities. The partnership is said to aim at reducing import dependence, generating foreign exchange savings, improving raw material availability for downstream industries and strengthening the domestic chemical industry in line with Indonesia’s downstreaming agenda. Construction was reportedly about 80% complete as of September 2026, with commercial operations targeted for 2027.
The CA-EDC project is described as a chemical plant combining a chlor-alkali unit, which is based on the electrolysis of brine, with ethylene dichloride (EDC) production. Chandra Asri Group is the project developer, and PT Chandra Asri Alkali (CAA), a Chandra Asri subsidiary, is reported to manage the facility. On the investment side, Danantara Investment Management and INA participate. Danantara Indonesia is described as a strategic investment management institution established under Law No. 1 of 2025, and INA is described as Indonesia’s sovereign wealth fund.
According to the reports, the three parties completed the strategic investment transaction on 2026-10-19, and the partnership is described as ongoing. The division of roles is reported as follows: DIM and INA contribute investment capabilities, while Chandra Asri Group contributes industrial expertise and experience and leads the project. Earlier, on 2026-03-03 in Jakarta, the same parties signed a Conditional Share Subscription Agreement (CSSA), which was described as the capital commitment phase following a Memorandum of Understanding (MOU) among the same parties.
The project is located in Cilegon, Banten, Indonesia. In the materials published in March 2026, the project was classified as a National Strategic Project (PSN, Proyek Strategis Nasional). The location and investment amounts are confirmed in the March 2026 announcement and in a law firm notice. The equity stakes and the split of the investment between Danantara and INA are not known.
On end uses, caustic soda is described as being used in soap and detergents, alumina refining and paper manufacturing, while EDC is described as relevant to the construction and packaging industries. Both chemicals are described as essential to Indonesia’s domestic manufacturing and industrial capacity. The plant is reported to apply high industrial technology and safety standards, with operational efficiency, supply reliability and sustainability compliance cited as goals. The process technology provider (licensor) is not known.
Expected benefits cited include reduced reliance on imports, foreign exchange savings, improved availability of raw materials for downstream industries, and the development of specialized technical expertise and operational capabilities in Indonesia. On employment, about 3,000 jobs are expected during construction and about 250 permanent positions during operations.
Numbers
- Caustic soda capacity: about 400,000 tonnes per year (about 400 KTA, kilotonnes per annum).
- EDC capacity: 500,000 tonnes per year (500 KTA). The March 2026 materials describe these as Phase 1 capacities.
- Total project value: about US$800 million (as announced in March 2026).
- Joint investment by Danantara and INA: US$200 million (as announced in March 2026). The split between the two institutions is not known.
- Construction progress: about 80% as of September 2026, with main equipment being installed and supporting infrastructure under development.
- Commercial operations target: 2027. A law firm notice refers to early 2027 as the target.
- Employment: about 3,000 jobs during construction and about 250 during operations.
- Location: Cilegon, Banten, Indonesia.
- Equity stakes, valuation, financing structure beyond the US$200 million joint investment, and closing conditions of the conditional agreement are not known.
Timeline
- 2026-03-03 — Danantara, INA and Chandra Asri Group signed the CSSA for the CA-EDC project in Jakarta, with a joint investment of US$200 million and a total project value of about US$800 million announced.
- 2026-03-05 — Law firm Latham & Watkins published a notice that it advised Chandra Asri Group on the partnership.
- 2026-09 — Project progress was reported at about 80% (as of September 2026).
- 2026-10-19 — Danantara Investment Management, INA and Chandra Asri Group announced completion of the strategic investment partnership transaction.
- 2027 (target) — Commercial operations are targeted to begin.
Note
- CSSA (Conditional Share Subscription Agreement): an agreement under which an investor subscribes to new shares once specified conditions are met.
- Chlor-alkali: a process that electrolyzes brine to produce caustic soda and chlorine together.