JAKARTA – PT Chandra Asri Pacific Tbk (TPIA) is constructing a Chlor Alkali-Ethylene Dichloride (CA-EDC) plant in Cilegon, Banten, at a cost of IDR 15 trillion.

The plant will be managed by its subsidiary, PT Chandra Asri Alkali (CAA), with a production capacity of 400,000 tonnes of wet caustic soda and 500,000 tonnes of EDC per year.

As part of the National Strategic Project (PSN), this project aims to strengthen industrial downstreaming and reduce Indonesia's dependency on chemical imports.

“This CA-EDC plant will not only enhance the competitiveness of domestic industries but also contribute to economic growth and job creation,” said TPIA President Director Erwin Ciputra in a disclosure on Tuesday (4/3).

TPIA has already secured various permits, including the Environmental Impact Analysis and Building Approval (PBG).

The plant will play a crucial role in the national chemical industry, particularly in the supply of caustic soda, which is used in the refining process of alumina and nickel, key components of electric vehicle batteries, as well as in the pulp and paper industry.

In addition, the EDC produced will serve as the main raw material in Polyvinyl Chloride (PVC), widely used in the construction sector, especially for plastic pipes.

Chandra Asri is partnering with Japan's Asahi Kasei Corporation (AKC) for the licensing of caustic soda plant technology, as well as a leading vinyl technology company from the United States for EDC production.

“We hope this project runs smoothly with the support of all parties so that it can have a positive impact on Indonesia's economy and the national chemical industry,” said Erwin. (DK/KR/ZH)