Petrochemical company PT Chandra Asri Pacific (TPIA) is building a Chlor Alkali-Ethylene Dichloride (CA-EDC) plant in Banten that is expected to create jobs for 3,000 workers during its construction and 250 workers when it starts operating in 2027.

Established in 1984, TPIA is Indonesia’s largest integrated petrochemical company, supplying essential raw materials for various industries, including packaging, automotive and construction.

In an effort to realize this project, TPIA in 2025 allocated Capital expenditure (Capex) of US$350-400 million (Rp5.5-6.3 trillion).

The project with a total value of Rp15 trillion will be managed by a subsidiary, PT Chandra Asri Alkali (CAA). The government has also designated the CA-EDC factory as a National Strategic Project (PSN) that can have an impact on sustainable economic growth.

"Our investment in the CA-EDC Plant is strongly supported by our experience as the backbone of the national petrochemical industry for 32 years. We are committed to continuing to create value for all stakeholders and provide economic impact for Indonesia through our leadership in the industry," President Director & CEO of Chandra Asri Group, Erwin Ciputra, said on Wednesday, March 19, 2025.

The CA-EDC plant will have a production capacity of 400,000 tons per year for solid caustic soda or 827,000 tons in liquid form and 500,000 tons per year for ethylene dichloride.

Erwin hopes that with the presence of this factory, Indonesia's dependence on chlor alkali imports can be reduced to Rp4.9 trillion per year. Meanwhile, all EDC produced will be exported and has the potential to increase the country's foreign exchange by Rp5 trillion per year.

Chlor alkali or caustic soda is useful for industrial water treatment, soap and detergent production, and alumina. Chlor alkali is also used in the nickel refining process so that it can support Indonesia in positioning itself in the global electric vehicle value chain.

Meanwhile, ethylene dichloride is a chemical with increasing regional demand because it is a key ingredient in the production of polyvinyl chloride (PVC), which is essential for the construction industry.

Then, the application of caustic soda is very important in the pulp and paper industry because it helps produce high-quality products. In the process of pulping, bleaching and deinking, caustic soda helps break down lignin, remove impurities and improve the quality of paper.