Impact of the US-Iran War, TPIA Limited Factory Operations and Announces Force Majeur

JAKARTA - PT Chandra Asri Pacific Tbk (TPIA) announced a state of force majeure following the eruption of the conflict between the United States (US) and Iran which led to the closure of the Strait of Hormuz.

Director of Human Resources & Corporate Affairs, Suryandi said, the closure of the Strait of Hormuz has an impact on the smooth distribution of raw materials in the supply chain.

"The company has submitted a force majeure notification to business partners in accordance with the applicable contractual provisions," he said in a statement to the media, Wednesday, March 4.

According to him, this delivery is an administrative step that is carried out in a measured manner, based on a thorough study of the potential implications for fulfilling obligations to customers, as well as a form of transparency to all stakeholders.

He also ensured that TPIA actively continues to monitor the development of the conflict between the United States and Iran, which continues to develop, and takes anticipatory steps to ensure operational resilience across all business units.

"As a mitigation, we will reduce the operational level (run rates) at our factories," continued Suryandi.

He also said that his party was also currently coordinating with customers to mitigate the impact of this.

"In this dynamic global condition, we are committed to maintaining operational continuity, business resilience and continue to evaluate the potential impact on our business activities," said Suryandi.