Chandra Asri Group has signed a Sale and Purchase Agreement with Shell Singapore Pte. Ltd. to acquire Shell Energy and Chemicals Park (SECP) in Singapore. The acquisition was made through a strategic partnership involving Glencore plc and is pending regulatory approval until the end of 2024. The move aims to strengthen the company's contribution to Indonesia's energy security and support the domestic chemical industry and infrastructure sectors. Through the acquisition of SECP, Chandra Asri will ensure the supply of petroleum and chemical products, such as gasoline and jet fuel, as well as ethylene, polyethylene, propylene, MEG, and styrene monomers, to support the needs of various local industries and manufacturing processes.
Chandra Asri Group President Director & CEO, Erwin Ciputra, stated that this move will positively impact the Indonesian economy. Proceeds from SECP operations will be repatriated and reinvested for domestic industrial development, including creating new job opportunities through the establishment of a company that will manage SECP operations. In addition, the transfer of technology and knowledge from SECP to Indonesia is also expected to help improve operational efficiency and strengthen the national industrial value chain.
Chandra Asri Group's expansion into the ASEAN region aligns with the company's strategy to expand its global presence, capitalizing on the projected market growth of 4.5% by 2024 and ASEAN's combined GDP estimated to reach USD 4.5 trillion by 2030. The partnership with Glencore and the acquisition of the Shell Energy and Chemicals Park (SECP) in Singapore not only strengthens Indonesia's global position but also drives innovation through technology and knowledge transfer. This collaboration is expected to improve the company's operational efficiency and competitiveness in the energy and chemical industry, while positively impacting national economic growth.
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On 27 September 2024, Bapak Andang Pungkase, Head of ESG & Sustainability at Chandra Asri, served as a panelist in a discussion hosted by HSBC Indonesia, featuring 28 Financial Talents from the Hong Kong Academy of Finance (AoF) who are participating in the Financial Leaders Programme 2024. The discussion focused on the theme Client Transition to Net Zero and aimed to share insights and knowledge about the industrial sector's transition journey to net zero. During this opportunity, Chandra Asri shared the company’s sustainability journey and ongoing decarbonization strategies, while also discussing the crucial role financial institutions play in supporting these transition efforts.
In an effort to conserve coral reef ecosystems, PT Chandra Asri Pacific Tbk, in collaboration with the Kelompok Konservasi Alam Bawah Laut (KABL) of Sukarame Village, has undertaken coral reef rehabilitation in the northern waters of Pulau Panjang, Serang Regency, Banten Province. Through artificial coral transplantation methods, a total of 1,270 coral seedlings have been planted since 2020 as part of efforts to restore the coral reef ecosystem.
Biodiversity monitoring conducted on February 25, 2024, showed that the substrate of the northern waters of Pulau Panjang was dominated by live coral, covering 60.5% of the area, an increase from 51% in 2021 and 52.2% in 2022. According to the Ministry of Environment Decree No. 4 of 2001 on Coral Reef Damage Quality Standards, this live coral cover is classified as being in Good condition. The dominant type of hard coral is Coral Massive, indicating strong currents and high sedimentation levels.
During the Indicator Reef Fish observation, 19 genera were found, dominated by Neopomacentrus sp., a carnivorous fish that acts as a predator for small organisms, including dead coral-eating species. Thalasoma sp. was also found, which plays an important role in the ecosystem by spending 90% of its day chewing, helping to clean live coral by eating algae that hinder coral growth. The Shannon-Weaver diversity index (H’) was recorded at 2.23, indicating a highly stable condition, with an evenness index of 0.75 and a dominance index of 0.16, both of which also point to ecosystem stability.
Additionally, water quality measurements were carried out in the northern waters of Pulau Panjang, assessing parameters such as temperature, salinity, and pH. The analysis results showed that water quality is very suitable for optimal coral growth, meeting the seawater quality standards according to the Ministry of Environment Decree No. 51 of 2004.
Click here to access the Panjang Island Coral Reef Transplantation Report.
Chandra Asri Group participated in ExxonMobil’s thematic session at the Indonesia Sustainability Forum (ISF) 2024, held on September 6 at JCC, with the theme "Carbon Capture & Storage (CCS): Advancing Collaboration Opportunities for Emission Reduction and Sustainable Growth." Represented by Edi Riva'i, Director of Legal, External Affairs, and Circular Economy, Chandra Asri Group outlined the company's decarbonization strategy and commitment to achieving net zero emissions, in line with Indonesia's ENDC targets. One of the technologies under consideration is CCS/CCUS, which is seen as crucial for reducing greenhouse gas emissions. Chandra Asri Group also emphasized the importance of cross-sector collaboration and government support, whether through regulations or incentives, to accelerate the implementation of this technology in support of industrial transformation and future emission reduction goals.
Chandra Asri Group is participating in the pilot program initiated by the Cilegon City Government, providing free nutritious meals at five schools in the city. A total of 2,054 students benefit from this program, receiving a set of eating utensils made from certified SNI and Halal plastic, which are reusable and recyclable, along with nutritious meals. Chandra Asri Group contributed by distributing the eating utensils made from the company's reusable plastic materials.
The Chairman of the Presidential Advisory Council (Wantimpres), Wiranto, in his speech, stated that the Free Nutritious Meals program in Cilegon is part of a national initiative supported by local companies through Corporate Social Responsibility (CSR) programs. "We highly appreciate the implementation of the free nutritious meals scheme in Cilegon City involving industrial CSR. Thank you to Chandra Asri for participating in this program," said Wiranto.
The packaging assistance in this program also supports the domestic economy, as the production and materials come from local manufacturers. Additionally, using these eating utensils helps maintain food hygiene, ensuring that the recipient students can consume their meals safely. We hope that future Free Nutritious Meals programs will continue to utilize packaging that adheres to the mentioned standards and benefits. The pilot project for Free Nutritious Meals in Cilegon City took place from August 19 to 22, 2024, with the target schools being SMPN 5, SDN Cilegon 09, SDN Cilegon 12, SDN Pangabuan, and SDN Samangraya I.
Chandra Asri Group successfully won the Katadata ESG Awards on August 8, 2024, in the Chemicals sector, thanks to the Company’s strong commitment to transparency in ESG (Environmental, Social, and Governance) performance information. One of the key criteria for this award was the comprehensive and detailed sustainability report, which covers various important sub-aspects such as environmental cost reporting, the use of eco-friendly materials, energy management, biodiversity conservation, and the management of emissions, waste, and effluents. Through this award, Chandra Asri Group is recognized for its strong ESG performance, demonstrating its commitment to creating a sustainable and responsible business.
The Katadata ESG Awards is part of the Katadata Sustainability Action for The Future Economy (SAFE) 2024 event series, aimed at appreciating companies with significant contributions to the implementation of sustainability principles. This award serves as recognition of Chandra Asri Group's efforts in conducting business aligned with sustainable development goals while strengthening our position as a leader in the chemicals industry. The event also highlights the important role of companies in balancing economic growth with environmental preservation for the future.
Chandra Asri Group once again showed its concern for environmental conservation by supporting the Wildlife Journalism Competition (WJC) agenda organized by the Center for Environmental Communication Studies of Padjadjaran University (Unpad). The roadshow, themed “Negative Human-Wildlife Interactions from an Environmental Journalism Perspective”, took place in Banten on August 6 and 7, 2024, in collaboration with Sultan Ageng Tirtayasa University (Untirta). The program aims to instill the value of animal conservation to students, develop journalistic skills, and provide an understanding of human-animal interactions from an environmental journalism perspective.
Throughout the event, around 70 students from various universities in Serang and Cilegon, Banten participated to learn practical skills in developing news, articles or reports related to wildlife conservation. Then, at the closing of the roadshow on August 8, 2024, a total of 50 students from Unpad and Untirta participated in mangrove planting at Lembur Mangrove Patikang, Pandeglang, an edu-ecotourism area assisted by Chandra Asri Group with an area of 9,500 square meters. This activity is expected to form a young generation who cares about nature conservation and strengthen efforts to protect the environment and animals.
Chandra Asri Group, with full awareness of the need to preserve biodiversity as an effort to protect and conserve ecosystems to sustain and maintain the sustainability of flora and fauna life. Biodiversity is a vital element for the company to ensure the sustainability and balance of ecosystems.
Chandra Asri Group's biodiversity performance in 2023, based on the Ex-Situ Flora Biodiversity Status Data at the Asri Kehati Park in 2023, recorded a total of 419 plants with 46 types of plants with a Flora Biodiversity Index of 3.03, an increase compared to the 2021 index of 2.98. Meanwhile, the In-Situ Flora Biodiversity Status at the Kadubereum Kehati Park in 2023 recorded a total of 3009 plants with 56 types of plants with a Flora Biodiversity Index of 3.29.
Meanwhile, the Fauna Biodiversity at the Asri Kehati Park in 2023 recorded 126 animals from 3 family categories, namely Aves, Herpetofauna, and Mammalia. Based on this data, the Fauna Biodiversity Index at the Asri Kehati Park was 2.07 for the Aves family, 1.66 for the Herpetofauna family, and 1.21 for the Mammalia family.
In 2024, Chandra Asri Group is expanding its innovation and performance in the planting of flora and fauna at ex-situ and in-situ sites. The flora conservation efforts in 2024, in collaboration with the Cidanau Watershed Communication Forum, involve the conservation of endemic fruit plants unique to the Banten province, with the Latin name Parartocarpus Venenosus Becc., also known as the Purut plant, whose distribution has significantly decreased in the Banten province. We have also successfully planted Cemara Udang, with the Latin name Casuarina equisetifolia. This plant contributes to soil fertility through nitrogen fixation. Its roots form symbiotic relationships with nitrogen-fixing bacteria, enriching the soil of the Asri Kehati Park, an ex-situ site, with nitrogen.
The fauna conservation efforts in 2024 involve the conservation of the Sunburst Turtle, with the Latin name Heosemys Spinosa, with a total of 4 individuals. This turtle, from the family Geoemydidae, is listed as Endangered on the IUCN Red List.
Chandra Asri Group remains committed to continuously increasing this biodiversity index as a step towards contributing to the balance of ecosystems. To view the biodiversity updates from Chandra Asri, click here.
PT Chandra Asri Pacific Tbk (Chandra Asri Group) has officially exercised the Greenshoe option under the US$600 million equivalent sustainability linked syndicated term loan facilities (“Facilities") signed in May 2024 to upsize the Facilities to US$800 million equivalent, following a positive response from the bank market and oversubscription to the Facilities. The Facilities provided by a number of banking partners across countries including Indonesia, Singapore, and Thailand. This agreement marks a greater and solid support from the banking industry, reaffirming Chandra Asri’s commitment to responsible business practices and environment stewardship which are expected to boost Company’s overall performance.
The loan is designated to foster and support environmentally and socially sustainable economic projects to support the Company’s growth, which will reinforce Chandra Asri Group's leadership in the chemical and infrastructure sectors. Through the integration of the financial strategies with sustainability objectives, Chandra Asri Group, as a committed growth partner, is confident to spearhead sustainable business practices.
The Admin Building OPE at the Ciwandan Plant in Cilegon has successfully obtained the EDGE (Excellence in Design for Greater Efficiencies) Advanced Green Building Certification from the Green Building Council Indonesia. The EDGE certification assesses three main aspects: energy efficiency, water efficiency, and embodied carbon in materials, focusing on consistent sustainability practices reflected in the building's daily operations by utilizing renewable energy and selecting materials with minimal environmental impact.
Chandra Asri Group will continue to integrate sustainability into its business strategy. This will be concretely implemented by considering Environmental, Social, and Governance (ESG) aspects in every business decision. This achievement also demonstrates the company's commitment to prioritizing environmentally friendly principles, with the EDGE Advanced certification recognizing that the Admin Building OPE has exceeded basic standards in design and operational efficiency for green buildings, resulting in more efficient use of electricity, water, and materials.
