Chandra Asri Group, Indonesia’s leading chemical and infrastructure solutions company, has secured an investment of US$194 million from Electricity Generating Public Company Limited or EGCO Group (EGCO), a leading independent power producer in Thailand. Following completion, EGCO will hold a 30% stake in Chandra Asri Group’s subsidiary, PT Chandra Daya Investasi (CDI), a special purpose vehicle dedicated for infrastructure solutions.
EGCO Group has been selected as Chandra Asri Group’s chosen partner to support the exponential growth of Chandra Asri Group’s infrastructure business, after a robust and comprehensive strategic investor selection process. This collaboration marks a significant milestone for both companies, combining Chandra Asri Group's expertise in the chemical and infrastructure sector with EGCO's proficiency in power and energy solutions.
Chandra Asri Group will continue to retain a controlling 70% stake in CDI. The net proceeds raised will be used for the development of Chandra Asri Group and EGCO’s infrastructure business, which comprises of energy, water and port facilities.
In order to achieve sustainable waste management, Chandra Asri, in collaboration with the Cilegon City Environmental Agency (DLH), is implementing the concept of a circular economy at the school level in Cilegon City. The collaboration is marked by the signing of a cooperation agreement, in which both parties agree to conduct waste sorting education at the schools in Cilegon City. The activities began with the implementation of a pilot project for waste management education at SMP 5 Cilegon. In this initiative, Chandra Asri also partnered with the Digital Waste Bank to support the implementation of the circular economy concept.
The collaboration between Chandra Asri and DLH Cilegon is expected to drive circular economy-based waste management to be replicated more widely, allowing for the management of a greater amount of waste, especially plastic waste. This initiative will also integrate the waste management facilities of the company, namely the Integrated Waste Management Industry - Overcome Waste, Manage Independently (IPST ASARI). The sorted waste at schools will be processed at IPST ASARI to produce fuel equivalent to kerosene, diesel, and gasoline, referred to as PLUSRI.
Chandra Asri Group supports the national strategic project, the The Cirata Floating Solar PV Plant (PLTS), in fulfilling the Domestic Content Level (TKDN). The company provides raw material for floats for the Cirata Floating PLTS solar panel system using Chandra Asri Group's HD Blow UB5206H resin.
Floaters provide the necessary buoyancy for the solar panels to float on the water's surface. Additionally, they assist in preventing the solar panels from sinking, adapting to changes in water levels, and maintaining stability to prevent the solar panels from tipping over or flipping. The Floating Solar PV Plant that occupies over a 200-hectare reservoir is the first utility-scale project in Indonesia and the largest in Southeast Asia, with a capacity of 192 MWp. The Cirata Floating Solar PV Plant project is part of Indonesia's efforts to increase the share of renewable energy sources (EBT) in the national energy mix, aiming to achieve Net Zero Emissions (NZE).
Presenting a space for every generation to create a positive impact on the environment and society, on Thursday, November 23, 2023, Chandra Asri launched the #IndonesiaAsri campaign. The campaign aims to inspire all stakeholders to collaborate in realizing a beautiful Indonesia in every aspect of life, with the goal of leaving a valuable legacy for future generations.
During the launch of the #IndonesiaAsri campaign, Chandra Asri invited various parties with a greater concern for sustainable living to share insights and experiences in contributing to the environment and society. This includes representatives of students, communities, as well as Asri Citizens, those who have joined as volunteers for #IndonesiaAsri. Through the #IndonesiaAsri initiative, it is hoped that each generation will have the ability to develop and implement sustainable environmental concepts, thus mitigating various risks and providing value to both society and the environment.
Chandra Asri has achieved the Gold award in the Large Organization category for Chemical, Pharmaceutical, Textile, and Mining Goods at the 2023 SNI Awards, organized by the National Standardization Agency (BSN). The Gold accolade received by Chandra Asri is a result of the company's consistent adherence to the Indonesian National Standard (SNI) for product quality and standardization.
This year, business transformation based on Environmental, Social, and Governance (ESG) criteria also played a significant role in the evaluation by the Jury. As a Growth Partner, Chandra Asri has consistently integrated the ESG framework, namely R.E.S.P.O.N.S.I.B.L.E, into the Company's strategy. This has added value to the company both in terms of products and overall business. Organizations that implement ESG are also recognized for engaging in business practices, investments, and policy implementations that align with sustainability.
Chandra Asri Group, in collaboration with PT Indonesia Asahan Aluminium (INALUM), is exploring the potential for cooperation in liquid caustic soda supply by Chandra Asri Alkali (CAA), a subsidiary of the Company, to INALUM, with an annual volume of up to 120,000 metric tons and the potential for INALUM to acquire up to 10% equity in CAA. This partnership marked by the signing of a Letter of Intent (LoI) by both parties and is aimed at supporting the downstream aluminum industry and accelerating the domestic electric vehicle ecosystem.
Through this LoI, Chandra Asri Group and INALUM are striving to facilitate the growth of the midstream and downstream aluminum industry, particularly for domestic electric vehicles. This partnership, marked by the signing of a Letter of Intent (LoI) by both parties, is aimed at supporting the downstream aluminum industry and accelerating the domestic electric vehicle ecosystem.
On Monday, October 30, 2023, the jury of the Subroto Award for Energy Efficiency (Penghargaan Subroto Bidang Efisiensi Energi or “PSBE”) recognized Chandra Asri’s Polypropylene Plant with a third-place in the "Energy Management in Buildings and Industry", specifically for the sub-category "Energy Management in Large Manufacturing Industries." This award acknowledges Chandra Asri Polypropylene Plant's dedication to implementing energy-efficient practices, contributing significantly to Indonesia's emission reduction targets outlined in the Nationally Determined Contributions (NDC) and the 2050 Long-Term Low Carbon and Climate Resilience Strategy (LTS-LCCR).
The Polypropylene Plant's energy efficiency initiatives encompass several programs, including the incorporation of Advance Process Control (APC) in the Reactor System and Vent Recovery Area. Over the period from 2018 to 2022, these efforts resulted in a noteworthy achievement, with total energy savings reaching 26.1 gigawatt-hours, equivalent to 9.6% of the plant's total energy consumption in one year, translating to IDR 35.5 billion in savings. This accomplishment demonstrates the company's steadfast commitment and tangible efforts in implementing energy efficiency through a diverse range of programs and innovations at the Polypropylene Plant.
In addition to the Polypropylene Plant's success, other Chandra Asri Planta also recieved recognition in the "Special Innovation in Energy Management in Industry" sub-category. The Ethylene Plant received acclaim for its energy-saving measures on propylene refrigerant compressors, the Polyethylene Plant for endeavours to conserve reactor system energy, and the Styrene Plant for its initiative to optimize air fin cooler performance through innovative tube bundle support. These acknowledgments highlight the broader organizational commitment of Chandra Asri to advancing energy efficiency and sustainability across various facets of its operations.
For its continuous business development in the Renewable Energy (EBT) sector, a subsidiary of the Chandra Asri Group, PT Krakatau Daya Listrik (KDL), has been honored with the "Private Company Providing Implementative Energy in the Energy Transition" Award at the 2023 National Energy Council Awards. This achievement recognizes KDL's commitment and success in implementing the Renewable Energy transition across various sectors and market segments.
KDL has successfully constructed Rooftop, Ground-Mounted, and Floating Solar Power Plants in various locations, including industrial and retail areas. By September 2023, the installation of these Solar Power Plants will save approximately 241 tons of CO2, equivalent to generating electricity for 773 households. Not only has KDL established Solar Power Plants, but the company has also successfully set up three Public Electric Vehicle Charging Stations (SPKLU) in two different regions through its subsidiary, PT Krakatau Sarana Energi.
For its consistent implementation of sustainability principles, Chandra Asri has successfully obtained the International Sustainability and Carbon Certification (ISCC), a globally recognized sustainability certification system for environmentally-friendly product production. With the attainment of ISCC, Chandra Asri's facilities are certified to meet the standards for processing bio-feedstock into bio-based products, such as Bio-Propylene, Bio-Ethylene, Bio-Crude C4, and Bio-Pygas. This accomplishment also supports Chandra Asri's efforts in transitioning towards more sustainable alternative raw material utilization.
In addition to obtaining ISCC certification, Chandra Asri has improved its MSCI rating from BB to BBB. Furthermore, Chandra Asri has successfully maintained its status as a company with "Low Risk" according to Sustainalytics, with a decrease in its ESG risk level from 17.7 to 16.6. Chandra Asri's stock [Code: TPIA] also remains listed in the IDX ESG Leaders lineup announced by the Indonesia Stock Exchange.
Chandra Asri once again organized the "Aksi Asri Operasi Semut untuk #IndonesiaAsri" (Asri Ant Operation for #BeautifulIndonesia) activity as part of the Jakarta Marathon 2023 Pre-Event held at Car Free Day (CFD) Jakarta on Sunday, October 8th. This ant operation aimed to educate the public about the importance of waste sorting. The total amount of waste collected during this Aksi Asri event was 43 kilograms, consisting of 26 kilograms of plastic waste, 4 kilograms of organic waste, 10 kilograms of paper waste, and 3 kilograms of other waste.
In addition to the Aksi Asri Operasi Semut, Chandra Asri also placed segregated waste bins in the venue area and packaging waste bins at 3 hydration spots during the Pre-Event of Jakarta Marathon 2023. From October 19th to 22nd, 2023, Chandra Asri will also have a presence in the expo area with a booth called "Indonesia Asri." At the Chandra Asri booth, visitors can experience waste sorting and see a variety of products made from waste materials, such as BBM Plas (Plastic Fuel) and Asphalt Plastik (Plastic Asphalt), which are made from low-value plastic waste.
