PT Chandra Asri Pacific (TPIA), a company owned by tycoon Prajogo Pangestu, is investing Rp15 trillion (US$908 million) to build a world-scale chemical manufacturing facility, which is scheduled for completion by 2027.

As part of its 2025 investment plan, the petrochemical giant has allocated between US$350 million-400 million (Rp5.5–6.3 trillion) in capital expenditure. These funds will go toward constructing the Chlor Alkali and Ethylene Dichloride (CA-EDC) Plant, managed by its subsidiary, PT Chandra Asri Alkali (CAA).

According to Suryandi, Director of HR & Corporate Affairs at Chandra Asri Group, the CA-EDC Plant will strengthen the domestic downstream supply chain. It will produce key base chemicals that support various industrial sectors, including textiles, pulp & paper, and water treatment.

“With its wide-ranging multiplier effect, this project will contribute to job creation and reinforce the independence of Indonesia's industrial sector,” Suryandi said in a statement on Tuesday, May 6, 2025.

This strategic investment is also part of Chandra Asri Group’s effort to reduce the country's reliance on imported raw materials and bolster the structural integrity of the national chemical industry.

The CA-EDC Plant will have an annual production capacity of 400,000 tons of solid caustic soda (equivalent to 827,000 tons in liquid form) and 500,000 tons of Ethylene Dichloride (EDC). According to Suryandi, the facility is expected to reduce caustic soda imports by up to Rp4.9 trillion annually.

In addition, all of the EDC output will be designated for export, potentially generating up to Rp5 trillion in foreign exchange income per year.

“This will not only strengthen the trade balance but also make a direct contribution to the national economy,” he added.

TPIA’s latest financial report shows a strong performance, with net revenue reaching US$622.1 million − a 31.8 percent increase year-on-year. This growth was fueled by a 32.5 percent rise in the chemical segment, which brought in US$592.6 million, and a 19.4 percent increase in infrastructure revenue, which reached US$29.5 million. These gains reflect the recovery of supply and demand following earlier disruptions.

However, the company’s cost of goods sold also rose to US$616.3 million from US$471.3 million, driven by higher raw material and utility costs as production and sales volume increased. Despite this, the company reported a dramatic surge in Earnings before interest, taxes, depreciation, and amortization (EBITDA), which jumped 1,870.2 percent year-on-year − from US$1.1 million to US$21.7 million.