JAKARTA. PT Chandra Asri Petrochemical Tbk (TPIA) has officially signed the Memorandum of Understanding (MoU) with Indonesia Investment Authority (INA) regarding the joint operation for the development of the chlor-alkali production facility.

With this MoU, INA, along with other potential investors, will consider the shares acquisition of PT Chandra Asri Alkali (CAA), one of TPIA's business portfolio in the chlor-alkali plant. This production plan is expected to generate 400 thousand metric tons per annum of caustic soda, also known as sodium hydroxide. Furthermore, the plant is said to have an ethylene dichloride (EDC) production capacity of up to 500 thousand metric tons per annum.

Ridha Wirakusumah, Head of Board of Directors of INA, said that this cooperation aligns with the company's investment priority that focuses in supporting nickel downstreaming processes, which will be vital for electric vehicle infrastructure development. "Through this collaboration, we aim to reduce Indonesia's dependency towards imported caustic soda significantly and further enhance our economic resilience," Wirakusumah added.

Meanwhile, Erwin Ciputra, President Director and CEO of TPIA, mentioned that the chlor-alkali plant is expected to handle the demands from Indonesia and Southeast Asia. "We are excited to be able to secure this cooperation with INA, in which this plant will minimise import and improve export," he added. (KR/ZH)