RRI.CO.ID, Jakarta – Danantara Indonesia and Indonesia Investment Authority (INA) have officially invested USD 200 million to build a new chemical plant owned by Chandra Asri Group. This collaboration was carried out through the signing of an investment agreement to produce Caustic Soda and Ethylene Dichloride (EDC) in Cilegon, Banten.

“This agreement marks the capital commitment phase in supporting the construction of the Chlor Alkali – Ethylene Dichloride (CA-EDC) factory in Cilegon,” Danantara stated in an official statement regarding the strategic agreement on Tuesday, 3 March 2026.

The factory is expected to not only meet the needs of Indonesians, but also to export its products overseas. This will help increase state revenue and enhance the competitiveness of the national chemical industry at the global level.

This step is part of a long-term economic transformation to convert raw materials into finished goods domestically. “The presence of Caustic Soda production capacity in the country is expected to significantly strengthen import substitution,” the project manager conveyed in a statement.

The Caustic Soda produced will be used as a raw material for soap, detergent, and paper. Meanwhile, EDC is essential as a primary raw material in the construction and packaging industries.

This major investment aims to reduce Indonesia's dependence on imported goods from abroad. By producing its own raw materials, Indonesia can strengthen the supply resilience of various important industries within the country.

The plant will be managed by PT Chandra Asri Alkali (CAA) and is targeted to begin operations in 2027. This project is part of the National Strategic Project (PSN) with a total construction value of USD 800 million.