Indonesia’s push to strengthen its domestic chemical industry has received a major boost.
This, with Danantara Investment Management (DIM), Indonesia Investment Authority (INA) and PT Chandra Asri Pacific Tbk (Chandra Asri Group) completing a strategic investment transaction for the country’s Chlor Alkali-Ethylene Dichloride (CA-EDC) project.
The project is expected to reduce Indonesia’s reliance on imported chemicals, save foreign exchange and secure supplies of essential raw materials for downstream industries. It also supports the country’s broader drive to expand domestic industrial capacity and strengthen its manufacturing base.
Chandra Asri Group is leading the project, combining its industrial expertise with the investment capabilities of DIM and INA. The partnership is also expected to help develop specialised technical skills and operational expertise in Indonesia, bolstering the competitiveness of the domestic chemical sector.
Construction had reached approximately 80% completion as of September 2026, with the installation of major equipment underway and supporting infrastructure being developed.
The facility is designed to produce approximately 400 kilotonnes per annum (KTA) of caustic soda and 500 KTA of ethylene dichloride (EDC)—two critical chemicals used across industrial and manufacturing supply chains.
Commercial operations are targeted to begin in 2027, marking a significant step towards expanding Indonesia’s domestic chemical production and reducing dependence on foreign supplies.
Beyond strengthening industrial capacity, the project is expected to deliver a substantial employment boost.
Around 3,000 jobs are projected during the construction phase, with approximately 250 permanent positions expected once the facility becomes operational.
The completed investment partnership brings together public investment institutions and a major domestic industrial player in a project designed to support Indonesia’s downstreaming ambitions, improve raw-material security and build a more competitive chemical industry.
With construction advancing and commercial operations targeted for 2027, the CA-EDC project is poised to become a key addition to Indonesia’s domestic chemical manufacturing capacity.
