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View all search resultsDanantara, INA to invest $800 million in Chandra Asri’s new plants
Danantara CIO Pandu Sjahrir has highlighted that the investment would bolster national resilience by cutting reliance on imported caustic soda and ethylene dichloride, key inputs for downstream industries such as nickel processing.
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Strategic investment: Chimneys stand tall at a gas processing facility operated by Chandra Asri in the industrial city of Cilegon in Banten, West Java. (Courtesy of Chandra Asri)
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tate asset fund Danantara and sovereign wealth fund Indonesia Investment Authority (INA) have signed a memorandum of understanding (MoU) to become strategic investors in the expansion of publicly listed petrochemical giant Chandra Asri Group.
The two government-backed entities are eyeing a stake in Chandra Asri’s upcoming Chlor Alkali and Ethylene Dichloride (CA-EDC) plants, in a joint investment that could reach up to US$800 million.
Pandu Sjahrir, Danantara’s chief investment officer, said the move aligned with the government’s push to advance downstream industries.
“The chemical sector underpins key value chains, from manufacturing to energy transition, especially 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,” he said in a statement on Tuesday.
Formed in February, Danantara has brought 844 state-owned enterprises (SOEs) under its operational umbrella. It plans to invest dividends from those SOEs, projected at around $7 billion this year, into domestic projects promising appealing returns and quality jobs.
Meanwhile, INA is a fund established in 2020 to attract foreign investors to domestic projects. Starting with Rp 75 trillion (US$5 billion) in initial capital, the fund currently has around Rp 160 trillion in assets under management, with a portfolio that includes toll roads, a lithium iron phosphate (LFP) cathode production facility and a geothermal energy firm.
Both Danantara and INA also signed an MoU with French mining company Eramet in May to become strategic investors in the full nickel supply chain.
