Chandra Asri Group Explores Opportunities For Cooperation With Perum Jasa Tirta II

JAKARTA - PT Chandra Asri Pacific Tbk (Chandra Asri Group), a leading chemical and infrastructure solution company in Indonesia, signed a memorandum of understanding (MoU) with Perum Jasa Tirta II (PJT II) to carry out a feasibility study related to green energy potential through the development of Solar Power Plants (PLTS) and Hydroelectric Power Plants (PLTA).

Energy from these facilities will later be distributed, one of which is to the Chlor-Alkali and Ethylene Dichloride (CA-EDC) factory on a world scale which is currently being developed by the Chandra Asri Group and has a total electricity capacity requirement of 340 MW.

This research aims to encourage the implementation of New and Renewable Energy and support Indonesia's target to achieve Zero Clean Emissions by 2060.

The signing was carried out by Edi Riva'i, Director of Legal, External Affairs, & Circular Economy Chandra Asri Group and Ruly Aryawan, Director of Supply Chain Chandra Asri Group and Dikdik Permadi Yoffana, Director of Business Development for Perum Jasa Tirta II in early April 2024.

Perusahaan Umum Jasa Tirta II merupakan BUMN Pengelolaan Sumber Daya Air yang menyediakan kebutuhan air bagi masyarakat & industri di wilayah Jawa Barat & Jakarta.

PJT II also manages the Jatiluhur Dam in Purwakarta and the Karian Dam in Lebak, Banten. In addition to power plants, this study will also see the potential development of a Clean Water Supply System (SPAB) with the Chandra Asri Group.

Edi Riva'i, Director of Legal, External Affairs, & Circular Economy Chandra Asri Group said that this collaboration between the Chandra Asri Group and PJT II is very important in supporting the Development and operation of the CA-EDC factory which is designed as a facility that implements green energy.

"As a Growth Partner for Indonesia, this feasibility study is also expected to create new business opportunities in the development of new and renewable energy to achieve sustainability," he said in a written statement, Thursday, April 18.

Chandra Asri Group is currently building a CA-EDC Factory that will have a production capacity of more than 400,000 tons of Soda Caustics and more than 500,000 tons of Ethylene Dichloride per year. This factory has an important role in meeting demand for caustic soda and ethylene dichloride products that are increasing from various industries not only in Indonesia, but also in Southeast Asia.

To operate this factory, initially it will require an electricity supply of 140 MW, then an additional 200 MW will be added in 2026, bringing the total electricity capacity needed to reach 340 MW.

Dikdik Permadi Yoffana, Director of Business Development Perum Jasa Tirta II, stated that Perum Jasa Tirta II, which is assigned by the Government in accordance with PP 25 of 2022 to manage WS Citarum, parts of Ciliwung-Cisadane, Cimanuk-Cisanggarung, Cidanau-Cijung-Cidurian and Seputih-Sekampung, certainly has great potential in terms of developing EBT to support government programs in achieving the 2060 Net Emission Zero Target.

"With this potential, we can also collaborate with private parties such as the Chandra Asri Group to support environmentally friendly energy use programs in the production process so that this cooperation plan is a strategic step for both parties," he explained.

Kaustic soda is an important raw material for various industries in Indonesia, including for the extraction of alumina, nickel, water treatment, textile production, paper, soap, and detergent. Meanwhile, Ethylene dichloride is an important component in the manufacture of Polyvinyl Chloride (PVC), which has a variety of applications in construction and packaging.

The construction of the CA-EDC plant can be a driving factor for Indonesia's ambition to play a role in the global supply chain of electric vehicles where demand for caustic soda continues to increase in line with the widespread adoption of electric vehicles around the world.