By: Rahayu Kirani
The Government of Indonesia continues to demonstrate its strong commitment to accelerating inclusive and sustainable economic development through various strategic projects. One concrete initiative supporting the national development agenda is strengthening collaboration with the Agantara Nusantara Investment Management Agency (Danantara), the Indonesia Investment Authority (INA), as well as private sector partners and financial institutions. This collaboration not only underscores the importance of synergy among agencies and sectors but also serves as a robust foundation for achieving national industrial resilience and enhancing societal welfare.
Danantara, INA, and PT Chandra Asri Pacific Tbk signed a memorandum of understanding for the establishment of a Chlor-Alkali – Ethylene Dichloride (CA-EDC) chemical plant—a major step in strengthening Indonesia’s downstream industry. This project is part of the National Strategic Projects (PSN), with an investment value of USD 800 million (approximately IDR 13.03 trillion). The facility is designed to produce 400,000 tons of solid caustic soda per year and 500,000 tons of ethylene dichloride—two essential industrial chemicals used in nickel processing, alumina refining, and the manufacture of soap and detergents.
Pandu Sjahrir, Chief Investment Officer of Danantara, emphasized that this project is part of a long-term effort to build a robust and sustainable chemical industry foundation in Indonesia. He noted that the investment strengthens national resilience by reducing dependence on important imports like caustic soda and ethylene dichloride. At Danantara, they welcome global partners who share a vision for creating a resilient, high-value ecosystem in Asia’s dynamic economy.
Meanwhile, INA’s CEO Ridha Wirakusumah stated that this collaboration aligns with INA’s long-term investment mandate to reinforce the domestic industrial base. By increasing national production capacity, the project not only addresses domestic needs but also offers export potential—expected to generate approximately IDR 5 trillion annually from ethylene dichloride exports. Additionally, reducing caustic soda imports could conserve up to IDR 4.9 trillion in foreign exchange each year.
Erwin Ciputra, President Director of Chandra Asri Group, welcomed the trust Danantara and INA have placed in the project. He believes their involvement underscores high confidence in Indonesia’s chemical industry growth potential. The plant will be managed by PT Chandra Asri Alkali (CAA), a subsidiary of Chandra Asri Group. It will not only meet domestic demand but also support the government’s downstream industrialization agenda.
The first phase of construction will focus on core production, followed by a second phase to expand capacity and develop chlorine-based derivative products—enhancing efficiency and synergy along the national supply chain. Feasibility studies are also underway to evaluate additional downstream products, expected to further strengthen Indonesia’s domestic manufacturing base and add value to the national economy.
Beyond industrial projects, the government is also focusing on meeting basic needs—especially adequate housing. In this context, Danantara has again demonstrated its strategic role by fully supporting the people’s housing program initiated by the Ministry of Housing and Settlement Areas (PKP). Working with a consortium of Himbara banks and Bank Syariah Indonesia (BSI), Danantara is prepared to provide financing of up to IDR 130 trillion for this housing initiative.
Danantara CEO Rosan Roeslani stated that a well-designed financing scheme is now ready for immediate implementation. He noted that by year’s end, financing could reach IDR 130 trillion. He also remarked on the banking sector’s high enthusiasm for the project due to government guarantees and attractive interest subsidies. As a result, the project is expected to proceed according to regulations and have a positive impact on national economic activity.
Minister of Housing and Settlement Areas, Maruarar Sirait, appreciated Danantara’s support for the people’s housing project and immediately tasked the Ministry’s Secretary General, Didyk Choiroel, along with BP Tapera Commissioner Heru Pudyo Nugroho, to coordinate technical steps. Concrete backing from Danantara and the banking sector is expected to accelerate the realization of affordable housing projects, especially through subsidy-based schemes.
The collaborative effort among Danantara, state financial institutions, SOEs, and private partners is strong evidence that cross-sector synergy can achieve significant national development goals. Both the chemical industry project, which fortifies manufacturing resilience, and the people’s housing project, which ensures adequate housing access, reflect the government’s successful strategy of leveraging national strategic assets to create long-term economic and social welfare impacts.
Through such collaborations, Indonesia moves closer to its grand vision of becoming an advanced, economically self-reliant nation with a robust industrial base and equitable prosperity for all its citizens.
