DBS Gives Rp. 840 Billion Loans To Companies Owned By The Prajogo Pangestu Conglomerate, What For?

PT Chandra Asri Petrochemical employees. (Photo: By courtesy)

JAKARTA - DBS Bank announced that the company has provided structured trading facilities worth US $ 60 million or the equivalent of IDR 840 billion (exchange rate of IDR 14,000) to PT Chandra Asri Petrochemical Tbk. (Chandra Asri).

This was done by DBS to support the efforts of the company owned by conglomerate Prajogo Pangestu to increase the growth of exports of petrochemical products from Indonesia. It is stated that DBS Bank has provided banking facilities to Chandra Asri since 2005.

DBS Bank Group Head of Institutional Banking, Tan Su Shan, said he was pleased to be able to continue the partnership with the company owned by the 3rd richest tycoon in Indonesia.

"We are trying to provide a structured trade financing solution to help more companies from Indonesia develop and grow internationally," he said in a press statement, Tuesday, February 22.

Tan added, the trade facility provided to Chandra Asri uniquely integrates a combination of trading products to provide solutions that suit your needs.

"This answers the company's trading needs and provides flexibility for Chandra Asri to increase this facility quickly when the company's export growth increases in the future," he said.

On the same occasion, President Director Chandra Asri Erwin Ciputra said DBS is a bank that operates a complex structure but is combined with a focus on good long-term partnerships.

"We are pleased to continue our strong relationship with DBS Bank through an elegant and innovative structured trading facility, which supports our strategic plan for growth in exports of petrochemical products," he said.

For information, PT Chandra Asri Petrochemical Tbk is a subsidiary of PT Barito Pacific Tbk. which is a corporation owned by senior businessman Prajogo Pangestu.

Chandra Asri is the largest and integrated petrochemical producer in Indonesia and operates the only Naphtha Cracker which produces Olefins (Ethylene, Propylene), Pygas and Mixed C4, as well as Polyolefins (Polyethylene and Polypropylene).

Recently, Chandra Asri completed the construction of the Butene 1 and Methyl Tert-Butyl Ether (MTBE) plants for the first time in Indonesia in 2020 on time in the midst of the COVID-19 pandemic.

This is in line with the company's plan to integrate vertically, support domestic consumption, and increase export sales of monomers and polymers from Indonesia to improve the country's balance of payments. Most recently, Chandra Asri is rumored to be a supplier of plastic raw materials for the production of Tesla's electric cars.