On 23 November 2021, PT Chandra Asri Petrochemical Tbk through its subsidiary PT Chandra Asri Perkasa has appointed four contractors namely Toyo Engineering Corporation, Samsung Engineering Co., Ltd., Wood, and PT Haskoning Indonesia to work on the Front-End Engineering Design (FEED) for its second world-scale petrochemical complex in Indonesia (CAP2). This new milestone was marked by a virtual signing ceremony of the agreement with the four international and leading contractors today, held across Indonesia, Japan, South Korea, and Thailand.
FEED is a key stage for the detailed planning of the CAP2 project, and will be followed by the selection of engineering, procurement, and construction (EPC) contractors. A Final Investment Decision (FID) will be taken by shareholders after EPC bidding is complete. Chandra Asri targets to take FID in 2022, and CAP2 operations to commence from 2026. CAP2 is the Company’s effort to respond to the challenges and opportunities arising from the growing demand for domestic petrochemical products, while reducing dependence on imports.
On 19 November 2021, PT Chandra Asri Petrochemical Tbk and PermataBank successfully launched a trade finance transaction using blockchain technology as a breakthrough for the trade financing process in Indonesia. PermataBank partners with Bangkok Bank PLC (Thailand) supported Letters of Credit issuance of Chandra Asri in Indonesia to their supplier. This transaction was completed on the Contour network within several hours compared to the traditional paper-based method. All parties achieved a significant efficiency improvement from digital information exchange, process streamlining, and transaction traceability.
In implementing this technology PermataBank collaborates with Contour, a blockchain-based company that provides services to more than 80 banks and companies across 17 countries in Asia, the Middle East, and Europe. This market-leading transaction marks the latest milestone of Chandra Asri’s Digital Transformation Program which can drive national economic growth.
On 18 November 2021, PT Chandra Asri Petrochemical Tbk won a Gold Award Appreciation for its plant in Ciwandan and a Silver Award for its plant in Pulo Ampel for the category of Large Organization of Goods in the Chemical, Pharmaceutical, Textile, and Mining Sector in the 2021 SNI Award event.
This award was given directly by the Head of the National Standardization Agency (BSN), Kukuh S Achmad, and the Deputy for Standard Implementation and Conformity Assessment (PSPK), Zakiyah to Chandra Asri. The SNI Award assessment is carried out strictly with a fairly long process (for approximately one year) and is carried out by a team of competent and experienced evaluators. This award shows Chandra Asri's consistency in his commitment to implementing SNI (Indonesian National Standard) for the quality and standards of its products.
PT Chandra Asri Petrochemical Tbk won Platinum and Gold Award at TKMPN (Temu Karya Mutu dan Produktivitas) XXV and IQPC (International Quality and Productivity Convention) 2021 held virtually on 15-18 November, 2021. The Gold Award was presented to SGA Chandra Asri Jack Hammer from the Mechanical Section SM plant and the Platinum Award was awarded to SGA Chandra Asri XPro from Ethylene and Utility Olefin. TKMPN XXV and IQPC 2021 are best practice sharing events for innovators from various national and international companies.
SGA Chandra Asri Jack Hammer won the Gold Award through the development theme "Eliminating Unplanned Shutdown in Furnace Coal Boiler 2BF-611 from 1 (one) case to 0 (zero) cases for 12 Months" in stream 2 TKMPN. SGA Chandra Asri XPro won the Platinum Award through the theme of developing "Eliminate Hydrocarbon Loss in Depropanizer #1 within 8 Months" in the IQPC stream internationally after competing with ten teams from four countries such as Indonesia, Philippines, Fiji and Japan.
On 16 November 2021, PT Chandra Asri Petrochemical Tbk won three awards at the annual Global CSR Summit & Awards 2021 which was held virtually. In the event, Chandra Asri received the Best Environment Excellence award in the Gold category, the CSR Leadership Award in the Gold category, and the Best Community Program in the Bronze category.
One of the awards in the Best Environment Excellence category was given for Chandra Asri's initiative in environmentally friendly technology to gradually switch to renewable energy in the factory environment. The company took an initiative to reduce its carbon footprint by building a PV (photovoltaic) solar panel installation on the factory roof that is capable of generating approximately 1,500 Megawatt-hours (MWh) of renewable electricity annually. The CSR Leadership Award was given to President Director Chandra Asri Erwin Ciputra, in a series of initiatives framed under the theme “Impactful CSR Leadership through Sustainability Development and Community Empowerment”. While in the Best Community Program category, Chandra Asri took a role in providing a positive impact on the community through infrastructure development in the form of iron girder bridges located in four different locations, namely Curug Bandung Village, Pasauran Village, Sajira Village in Lebak Regency, and Tangkilsari Village in Pandeglang Regency.
On 10 November 2021, PT Chandra Asri Petrochemical Tbk held Community Awareness Phase 4 for residents in Kepuh Village, Ciwandan. The event to provide education and disaster mitigation were attended by a total of 71 people consisting of representatives of citizens and representatives of local government agencies, including BPBD Cilegon, POLSEK and KORAMIL Ciwandan, as well as local villages and sub-districts. This activity was carried out by complying health protocols, namely the obligation to wear masks and maintain physical distance.
In this activity, Chandra Asri socialized the existence of gas pipelines and information related to the distribution of products owned by the company, especially polymer products, which use various modes of transportation that cross the highway close to the settlement of residents. This is a manifestation of the company's sustainability commitment in educating citizens about the existence of the company's gas pipelines that are close to settlements while providing disaster mitigation knowledge in case of leaks in the company's gas pipelines.
By continuing to implement strict health protocols, PT Chandra Asri Petrochemical Tbk held an Extraordinary General Meeting of Shareholders (EGMS) on 8 November 2021. The meeting which took place at Wisma Barito Pacific, Jakarta, was attended by the Board of Commissioners and Directors of Chandra Asri directly and virtually.
In the meeting, the plan to amend the articles of association was approved. The Company hereby intends to propose amendments to several articles in the Company's Articles of Association, namely Article 14 paragraph (1) regarding the Board of Directors and Article 18 paragraph (1) regarding the Board of Commissioners. The proposed changes are specifically regarding the maximum number of members of the Board of Directors and members of the Board of Commissioners to a maximum of 15 members of the Board of Directors and 15 members of the Board of Commissioners.
The plan to increase the composition of the Company's Board of Directors and Board of Commissioners was also approved by the shareholders. To support the Company's operational activities which are increasingly high and complex, as well as with the presence of new investors who have committed to contribute to the Company, the Company deems it necessary to add members of the Board of Directors and Board of Commissioners with a term of office of each member is 3 years.
Coral reefs are one of the ecosystems that are very influential on the condition of the sea to the coast. Damage to coral reefs can eliminate fish populations, change coastal profiles, reduce freshwater stocks on small islands, and have an impact on reducing the income of coastal communities. Seeing the importance of coral reef rehabilitation in marine waters, PT Chandra Asri Petrochemical Tbk in collaboration with the Sukarame Underwater Nature Group (KABL) and Experts from the Fisheries College LPSPL Serang, implemented the Coral Reef Transplantation Program in the Northern Waters of Panjang Island, Banten Bay, with the coordinates of -5,92057197355 South Latitude and 106, 16101297500 East Longitude. This program has been carried out since April 2020 as a form of Chandra Asri's contribution to the protection of marine and coastal ecosystems.
In this program, a total of 1,250 coral reef seedlings were transplanted on 25 rack units with the Shelf and Cast Hybrid System. Coral reef seedlings that were transplanted were Acropora sp. with a branching growth form consisting of 6 species, including Acropora carduus, Acropora cervicurnis, Acropora formosa, Acropora grandis, Acropora intermedia, and Acropora pulchra.
Monitoring the results of coral reef transplants is carried out every month to measure the growth rate of coral reefs on 25 shelf units. Measurement of growth was carried out using a simple random sampling method, in which the minimum total sample measured based on the Slovin formula was 125 samples. It shows positive results from coral reef transplantation activities, namely an increase in average height every month.
In addition to monitoring the average height, observations were also made on the Survival Rate (SR) indicator showing the survival rate of coral reefs, namely the percentage of the number of coral reefs that are still alive to the total number of coral reefs transplanted. The average survival rate (SR) of coral reefs is more than 90%. This shows that the implementation of coral reef transplantation is going well.
Coral reef transplants made as Artificial Coral Reef have become a living habitat for associated biota, both as a home for coral reef biota, a nursery ground for fish as well as a habitat for large fish and various megabenthos.
Marine biota found in coral reef transplant areas during monitoring in 2020 and 2021 included one seahorse (Hippocampus spinossisimus), stingray (Taeniura Lymma), jellyfish (Aurelia aurita), clam (Perna viridis), snail (Druplla sp.), starfish (Culcita sp.), rock fish (Synanceia verrucosa), reef fish (Epinephelus sp., Amblyglyphidodon curacao, Amblyglyphidodon curacao), Angle Fish, Nudi Branch, and Tetralia crab.
Shellfish (Bivalves) which are filter feeder biota can be an indicator biota for the presence of sedimentation in these waters. The presence of Bivalves can also help clean the surrounding seawater from dissolved sedimentary particles. Besides Bivalves, several Sponge, Algae, and other types of biota were also found.
On 16 October 2021, PT Chandra Asri Petrochemical Tbk together with Kencana Hospital carried out a free COVID-19 vaccination program for the public in the Cilegon City, especially Cibeber District. This vaccination program is the second phase where the first phase was held on 11 and 18 September 2021. Located at the Chandra Asri Sports Hall, the second stage of the vaccination program was attended by more than 1,000 people. The Mayor of Cilegon, Helldy Agustian was also present at this vaccination program, expressed his appreciation for Chandra Asri's contribution in suppressing the spread of COVID-19 in Cilegon City.
Chandra Asri has held a COVID-19 vaccination program for 8 times which has been held in stages every month since August 2021 and has been attended by a total of more than 4,000 people. This vaccination program is a manifestation of Chandra Asri's commitment to supporting public health and safety, especially in the Cilegon City area in tackling the COVID-19 pandemic.
PT Chandra Asri Petrochemical Tbk held a Disaster Emergency Response socialization for the community in Mangunreja Village, Serang, Banten, which is the area around the location of Chandra Asri Site Office Pulo Ampel. The activity was carried out on 13 October 2021 as Chandra Asri's efforts in anticipating disasters by forming community preparedness to be able to save themselves and others.
Various potential disaster emergencies can occur in the village, especially tsunamis. This became the purpose for Chandra Asri in conducting emergency response activities in Mangunreja Village. This disaster preparedness exercise includes coordination, communication, and evacuation exercises involving stakeholders, namely the village government, volunteers, and the general public.