JAKARTA: Indonesia’s state-owned asset management firm Danantara and sovereign wealth fund Indonesia Investment Authority (INA) have entered into a memorandum of understanding (MoU) to become strategic investors in the expansion of publicly listed petrochemical leader Chandra Asri Group.
The agreement marks a significant milestone for Indonesia’s downstream industrial development, with the proposed joint investment in Chandra Asri’s upcoming Chlor Alkali and Ethylene Dichloride (CA-EDC) facilities projected to reach up to US$800 million.
Pandu Sjahrir, Chief Investment Officer of Danantara, stated that the investment initiative aligns with the government’s broader agenda to enhance domestic downstream industries. He emphasised the chemical sector’s vital role across critical value chains, particularly in manufacturing and the ongoing energy transition, including applications in nickel processing and alumina refining.
“This investment strengthens national resilience by reducing dependence on imports for essential products like caustic soda and Ethylene Dichloride,” Sjahrir said.
Danantara, which was established in February, currently oversees 844 state-owned enterprises, positioning itself as a key driver of industrial transformation and strategic investment within the republic.
-The Jakarta Post
