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Chandra Asri invests $200m to grow energy business
The publicly listed petrochemical company is investing $200 million into the power sector in a bid to play a more active role in the country's energy transition.
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Chimneys at petrochemical company Chandra Asri’s gas processing plant, which produces methyl tert-butyl ether (MTBE) and butene-1, jut into the skies above Cilegon in Banten province. (Courtesy of Chandra Asri)
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ublicly listed PT Chandra Asri Petrochemical, which trades as TPIA, has announced a US$200 million investment as it seeks to deepen its business in energy infrastructure.
Chandra Asri made the investment through its subsidiary PT Krakatau Daya Listrik (KDL), which plans to use the fund to increase its stakes to 45 percent in PT Krakatau Posco Energy (KPE), its joint venture with South Korean steel giant POSCO International Corporation.
KDL also plans to use a portion of the fund to support KPE’s expansion in building a new 200-megawatt (MW) power plant, following a final investment decision.
“This move reinforces our commitment to deepen our cooperation and strengthen our position as a major investor in the energy sector,” Erwin Ciputra, Chandra Asri’s president director and CEO, said in a statement on Monday.
Read also: Krakatau Posco's $3.5b steel mill project to finish construction by 2027
After the investment, KDL is expected to own power plants with a combined capacity of 300 MW, which includes its existing facilities of 120 MW capacity. Its planned shares increase and power plant expansion related to KPE is to contribute the remaining 180 MW.
Erwin also explained that Chandra Asri's increased ownership in KPE would give the company a more active role in shaping Indonesia's energy landscape, especially as KPE provided “reliable and cost-effective energy solutions with minimal environmental impact”.
