Chandra Asri and Pandeglang Regency Government symbolically planted mangroves to inaugurate the Patikang Mangrove Edu-Ecotourism Area in Citereup Village, Pandeglang Regency, Banten, on Tuesday, August 30, 2022. Collaborating with other stakeholders, Edu-Ecotourism Mangrove is Chandra Asri's commitment to the principles of Environmental, Social, and Governance (ESG) and efforts to realize Net Zero Emissions in Indonesia. Furthermore, this 9,500 m2 area is also intended to maximize blue carbon as part of the decarbonization process.
In addition to completing the first phase through track repairs and the construction of Chandra Asri's educational shelter, the Company has also collaborated with IKAMAT (Inspirasi Keluarga Kesemat), UNDIP's Marine Science alumnus foundation, to examine the condition of mangrove vegetation, herpetofauna species, and the diversity of mammals and aves within the area. Moreover, the Company has completed a study to determine conservation and development areas to decide the interventions needed to maintain the ecology of the mangrove area. Furthermore, mangrove planting is planned to be carried out again in 2022.
Chandra Asri is collaborating with LX International for a potential investment in developing a Hydrotreated Vegetable Oil (HVO) facility that can produce renewable feedstock in the form of Bio-Naptha. This raw material will be used to develop chemical and plastic products such as Bio-Polyethylene (PE), Bio-Polypropylene (PP), Bio-Polyvinyl Chloride (PVC), and Bio-Solution Styrene Butadiene Rubber (SSBR) as an effort to support Chandra Asri towards sustainable production of polymer raw materials.
This collaboration was marked through a Memorandum of Understanding (MoU) by President Director of Chandra Asri, Erwin Ciputra and CEO of LX International, Yoon Chun-Sung, at the office of the Coordinating Ministry for Maritime Affairs and Investment of the Republic of Indonesia. Also witnessing the signing of this collaboration, the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Binsar Pandjaitan and his staff. The HVO project is one of Chandra Asri's efforts to implement its commitment to sustainable business and operations, which in accordance to the principles of Environmental, Social, and Governance (ESG) as the company’s contribution to climate change mitigation and resource scarcity.
Chandra Asri again awarded scholarships to outstanding students from several sub-districts in Cilegon City and Serang Regency. The awardee will receive a fully funded scholarship to pursue D3 Chemical Engineering for three years, get a monthly allowance, and work contract at the Company after graduating. The polytechnic schools that collaborated with Chandra Asri to accept selected prospective students in this scholarship program were State Polytechnic of Bandung (POLBAN) and State Polytechnic of Malang (POLINEMA).
Nine prospective students who were awarded the scholarship came from Kepuh Village, Gunung Sugih Village, Grogol Indah Village, Kosambironyok Village, Anyar Village, and Mangunreja Village. This scholarship program is Chandra Asri's support to answer the needs of local workers, especially in the field of chemical engineering, which is needed for the industry sustainability in Cilegon City. Furthermore, this initiation is also part of the Company's efforts to increase the absorption of local workers to work at Chandra Asri. After the scholarship recipients graduate from college, they will later undergo working bound at Chandra Asri for six years.
Chandra Asri partnered with Ruangguru Foundation to hold a women's competency improvement and empowerment program, PUAN ANGKASA (Women in a Synergistic and Empowered Community). This series of events that will run for three months is intended to provide assistance in work preparation and deepen participants' understanding of women's empowerment issues. A total of 50 participants consisting of female students and recent graduates from various universities in Indonesia will undergo a series of competency improvement programs and receive holistic assistance to help them prepare for their future careers.
PUAN ANGKASA consists of several events, including the Inspiration Class, which discusses women's empowerment issues, and the Career Preparation for Development of the Youth (READY) Program, which is intended to improve soft skills through mentoring and free learning access via Skill Academy platform.
Through its collaboration with Ruangguru, Chandra Asri seeks to become the growth partner and be part of women's journey in exploring and maximizing their potential. This is in line with Chandra Asri's commitment to encouraging inclusion & diversity in Indonesia, specifically related to women's empowerment.
Considered responsive in maintaining performance and navigating the company amidst the pandemic, Chandra Asri won two trophies at the Bisnis Indonesia Award 2022 held on Monday, August 15, 2022. With the theme “Awakening in the Year of Change” as its awarding theme, Chandra Asri won The Best Company in Raw Material Sector and the Best CEO of The Year category on behalf of President Director Chandra Asri Erwin Ciputra.
The achievement as The Best Company in Raw Material Sector that Chandra Asri received was the result of the Company's success in posting a 13 percent increase in net revenues to US$677.7 million from US$598.4 million in the first quarter of 2022. Meanwhile, the Best CEO of the Year, which was achieved by the President Director of Chandra Asri, Erwin Ciputra, was assessed based on good business development, implementation of good corporate governance (GCG), and disclosure of company information.
Chandra Asri held the third Community Awareness activity in 2022 with the residents of Panggung rawi Village, Cilegon, Banten, on Thursday, August 11, 2022. As an effort to increase awareness of the risks from gas pipelines, this Community Awareness activity involved 51 participants consisting of village representatives, the Cilegon Police Chief, Neighborhoods Association (RT and RW) representatives, youth around the area, and community leaders. This time, the theme for Community Awareness is “Building Public Awareness and Participation Towards Presence and Safety of Industrial Gas Pipelines for the Community.”
On the same occasion, the representative of the Regional Disaster Management Agency (BPBD) of Cilegon City, Mr. Fathurrohman, brought a topic related to Disaster Preparedness. Furthermore, the residents also received education regarding the Risks and Hazard Mitigation of Gas Pipelines, which was delivered directly by the representative of the Safety, Health, and Environment (SHE) Chandra Asri, Mr. Sumartono. This socialization includes cautions regarding prohibited activities around the pipeline, such as planting perennials, burning garbage, making excavations, and constructing buildings.
By holding Community Awareness regularly, Chandra Asri hopes that the resident can always be vigilant to avoid unwanted accidents or disasters.
Strictly adhering to health protocols, Chandra Asri held an Extraordinary General Meeting of Shareholders (EGMS) on August 5, 2022. The EGMS, which took place at Wisma Barito Pacific, Jakarta, was attended by the Board of Commissioners and Directors of Chandra Asri both in person and virtually.
During the agenda, members agree on several decisions proposed by the Company. The first approval is regarding the stock split of Chandra Asri with a ratio of 1:4, so that the nominal value of Chandra Asri's shares which currently amount to Rp. 200, - will change to Rp. 50, - per share. This corporate action is expected to increase the liquidity of Chandra Asri's stock on the market and attract more retail investors.
In the second agenda, the meeting approved the appointment of Mr Prapote Stianpapong as a new member of Chandra Asri's Board of Directors, replacing Mr Somkoun Sriwattagaphong, starting from October 1, 2022, until the closing of the Chandra Asri Annual General Meeting of Shareholders in 2024. Chandra Asri greatly appreciates the dedication and contribution of Mr Somkoun Sriwattagaphong during his time as Production Director of Chandra Asri.
Committed to carbon emissions reduction and supporting the domestic electric vehicle industry, Chandra Asri purchased and will operate two (2) units of electric bus produced by Mobil Anak Bangsa (MAB). The use of electric buses as operational vehicles for employees is a form of the Company's commitment to implementing Environment, Social & Governance (ESG) in environmental aspects, particularly in terms of energy saving and carbon emissions reduction.
These two EV buses are calculated to cut diesel consumption by 13,776 liters per year, reduce emissions by up to 2,070 metric kg of carbon dioxide (CO2e), cut 25.1 metric kg of carbon monoxide (CO), and eliminate the output of B3 waste in the form of used oil. The MD 12-E NF City electric bus from MAB has a capacity of 51 seats and is planned to operate at Chandra Asri in January 2023. To prepare for the arrival of the EV us fleet, Chandra Asri is currently reviewing its plant in Cilegon to determine the location of the charging facility.
PT Pertamina Gas (Pertagas) and PT Chandra Asri Petrochemical Tbk (Chandra Asri) signed a Memorandum of Understanding (MoU) on the Potential and Analysis of Green Energy and Petrochemical Business Development as well as Increasing Domestic Component Level of Natural Gas Infrastructure.
Collaboration between Pertagas and Chandra Asri will support the program of 1 Million Gas Network Connections per year by supplying raw materials supply for gas pipelines. Both companies will also develop the use of natural gas and its derivatives owned by Pertagas to meet the production needs of the Chandra Asri Plant in Cilegon, Banten as well as analyzing utilization of Chandra Asri facilities for the development of the Liquefied Natural Gas (LNG) terminal infrastructure or Pertagas pipeline distribution network.
This cooperation is a manifestation of both parties’ commitment in supporting two Government programs at once, namely reducing dependence on imported products by encouraging the use of Domestic Component Level (TKDN) in Indonesia and the use of green energy to reduce carbon emissions by 29 percent by 2030.
Chandra Asri officially became the first recipient of Sustainability-Linked Trade facility in Indonesia from Bank UOB through a signing that happened on Monday, July 25, 2022. The US$100 million facility that Chandra Asri received is expected to increase the resilience of Chandra Asri's supply chain and fulfill the Company's commitment towards ESG priorities. Furthermore, it is hoped that this step will boost the Company's ability to meet the demand for the petrochemical industry in Indonesia.
Aligned with the United Nations Sustainable Development Goals (SDGs), UOB’s sustainable financing frameworks enable companies to apply for green or sustainability-linked banking products without having to develop their own financing frameworks. The Sustainability-Linked Trade program itself is also part of UOB’s Green and Sustainable Trade Finance and Working Capital Framework, which seeks to support clients’ long-term sustainability goals.
