JAKARTA (RambuEnergy.com) – PT Chandra Asri Petrochemical Tbk (IDX:TPIA), the country’s largest petrochemical producer, has registered a new subsidiary firm called PT Chandra Asri Perkasa, with the national Investment Coordinating Board (BKPM) on Monday (Apr 3). The company, through the subsidiary plans to invest up to US$5 billion build another cracker plant with installed capacity of 1 million tons per annum.
Vice President Corporate Relation of Chandra Asri Suhat Miyarso said Chandra Asri will own 99% shares in the new unit and 1% is held by PT Styrene Monomer Indonesia (MI), which is also a subsidiary of Chandra Asri.
Suhat will also become president director of PT Chandra Asri Perkasa.
Suhat said the investment plan of US$5 billion will be spent in stages. He said in the first phase, the company proposed a plan to invest US$1.95 billion.
The remaining funds will be invested to produce downstream petrochemical products such as polyethylene, C4, py gas and others. The company expects to get funding from international banks and domestic banks.
PT Chandra Asri Perkasa said it expects to kick of the commercial operation date (COD) of the company in 2021. The new plant will produce 1 million tons of ethylene, 550,000 tons per annum of prophylene, py gas 450,000 tons, mixed c$ 350,000 tons per annum.
The new cracker plant will be built on 100 hectares of land in Anyer, Banten province in the western tip of Java Island.
Suhat also said the company has submitted request for tax holiday as fiscal incentives for the new investment.
Chandra Asri’s performance has improved significantly. In 2016, the company booked net profi t of US$300.1 million compared to only US$26.3 million in previous year. Its revenues reached US$1.95 billion, up 40% from US$1.38 billion in previous year. (*)