Indonesia to Develop Large-scale Chlor-alkali Plant in Collaboration with Japanese Player

May 2023

PT Chandra Asri Petrochemical Tbk (Chandra Asri), Indonesia’s largest petrochemical company, and Indonesia Investment Authority (INA) have signed a Memorandum of Understanding (MoU) to jointly develop a large-scale chlor-alkali plant in Indonesia. INA, along with potential international investors, may acquire an equity stake in PT Chandra Asri Alkali (CAA), a subsidiary established to invest in the plant’s development. The plant is projected to produce over 400,000 metric tons per year of caustic soda and 500,000 metric tons per year of ethylene dichloride (EDC).

To expedite the progress of the plant’s development, Chandra Asri has entered into a basic engineering and licensing agreement with Asahi Kasei Corporation (AKC) from Japan. AKC is a global licensor known for its intellectual property related to the construction of large-scale chlor-alkali plants.

According to Ridha Wirakusumah, CEO of INA, the collaboration aligns with their investment priority of supporting the downstreaming of the nickel supply chain. Additionally, the partnership aims to decrease Indonesia’s reliance on imported caustic soda.

Caustic soda is essential for Indonesia’s expanding downstream sectors, including alumina extraction, nickel extraction, water treatment, textile production, pulp and paper production, and soap and detergent production. Ethylene dichloride is a key intermediate chemical used in the production of polyvinyl chloride (PVC), which is widely utilized in construction and packaging.

(Sources: Chandra Asri; Investor Daily)

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