Strengthen the Integration of Energy, Chemical and Infrastructure Businesses, TPIA Emphasizes its Position in Southeast Asia

JAKARTA - In the midst of increasingly complex global industry dynamics, PT Chandra Asri Pacific Tbk (IDX: TPIA) has outlined its business transformation direction towards a leading energy, chemical and infrastructure solutions company in Southeast Asia. This transformation is a response to changes in the industrial landscape, energy price volatility, and the need to strengthen increasingly integrated regional supply chains.

On the other hand, domestic opportunities are still wide open. Around 50 percent of the country's petrochemical needs are still met through imports, while Indonesia's demand growth exceeds the global average. This gap is a strategic foundation for TPIA to strengthen production capacity, encourage import substitution, and create added value including job opportunities in the country.

Until now known as one of the main players in the national petrochemical industry, TPIA is now expanding its business scope through strengthening an integrated ecosystem that includes the chemical, energy, and infrastructure sectors. This model is designed to build a more robust business structure, deepen vertical and horizontal integration, create cost efficiency and supply security, and expand economic impact through the opening of direct and indirect employment.

Director of Human Resources & Corporate Affairs of the Chandra Asri Group, Suryandi, in a discussion with the media on February 24, 2026, conveyed that the development of the ecosystem was the main foundation of the company's growth strategy.

"The secret is how we can build a mutually reinforcing ecosystem in the fields of energy, chemicals and infrastructure, as a reliable and competitive unit at the level of Southeast Asia. With a track record of consistent growth, we have grown from local roots to the fourth largest petrochemical company in Southeast Asia," he said. , in a discussion with the media, Tuesday, February 24.

Suryandi added that in terms of production capacity, the Company projected a significant acceleration. From around 4.2 million tons in 2024, TPIA's integrated capacity is projected to increase to more than 21 million tons in 2027, or grow almost fivefold as the Company's asset expansion and regional integration are carried out.

In supporting the transformation and development of business to the regional level, TPIA is also integrating assets in Indonesia and Singapore to optimize feedstock, production, utilities, and logistics end-to-end while expanding access to regional markets.

Director of Legal, External Affairs & Circular Economy Chandra Asri Group, Edi Riva'i, on the same occasion explained that the development of cross-country ecosystem networks is carried out to ensure the efficiency of the value chain from upstream to downstream.

"This integration allows for a more effective and efficient production flow, so that business growth can continue. At the same time, this expansion also opens up new job opportunities and encourages the competence of national talent," explained Edi.

As part of strengthening the business structure, TPIA also developed the strategic project of the Chlor Alkali & Ethylene Dichloride (CA-EDC) Plant to strengthen the supply of domestic chemicals as well as support import substitution. The project has reached more than 50% construction progress and is targeted to produce 400 KTA caustic soda and 500 KTA EDC. Strategically, the construction of this facility also strengthens the resilience of the industry and the independence of the supply of national chemicals.

Through the substitution of caustic soda imports and the potential for EDC exports to the Southeast Asian market, the CA-EDC project is projected to create economic value of up to around IDR 10 trillion per year. In addition, this project is also expected to absorb up to around 3,250 workers during the construction and operational phases, as well as creating multiple effects for supporting industries and MSMEs in the surrounding area.

In addition, the company also formed Chandra Asri Sentral Solusi (CASS), a shared service entity that serves as an integrated back office service center. Currently, CASS is focused on supporting Aster operations and in the future it is targeted to be able to expand services to external parties. By next year, the development of CASS is projected to absorb around 200 employees as capacity and service coverage increase.

Through the transformation and expansion carried out, TPIA strengthens its position at the regional level but also supports the national downstream agenda, reducing import dependence and providing a multiplier effect for the domestic industry.

Senior Market Analyst of PT Mirae Asset Sekuritas Indonesia, M Nafan Aji Gusta Utama, also appreciated TPIA's transformation step, which was considered capable of expanding the business model from the petrochemical sector to a company that provides integrated energy, chemical and infrastructure solutions.

According to Nafan, the transformation efforts have been responded to well by market players, because it has proven to have a positive impact on the Company's overall performance. He highlighted TPIA's ability to record a significant rebound in 2025, with net profit jumping drastically compared to the previous period which still recorded losses.

In general, the latest financial snapshot shows that TPIA has a market capitalization of around IDR 618.6 trillion, with a price earning ratio (PER) in the range of 28-29 times, higher than the industry average.

"In addition, with the transformation, TPIA is also increasingly active in strategic acquisitions, such as Aster Chemicals and Energy Pte Ltd, then also the Esso network of ExxonMobil's gas stations in Singapore, and many others. This is certainly very positive from the point of view of market participants," said Nafan.

Even so, Nafan also reminded that in the midst of the advantages it has, there are a number of challenges that need to be mitigated, including profit margins which are influenced by fluctuations in crude oil prices and global chemical product prices, as well as the condition of oversupply of the petrochemical industry from China which has the potential to suppress product selling prices.

"Another thing, TPIA shares are often traded with a price earning (PER) and PBV (price to book value) ratio that is far above the industry average, so it is included in the premium valuation category. This makes the stock price vulnerable to correction, if the expected growth of the market does not seem to be achieved in a timely manner," said Nafan.