PT Chandra Asri Pacific Tbk, a leading energy, chemical and infrastructure solutions provider in Indonesia, is identifying its potential contributions to national interests through its partnership with Glencore plc in the acquisition of Shell Energy and Chemicals Park (SECP) in Singapore. Chandra Asri Group and Glencore have signed a purchase agreement with Shell Singapore Pte. Ltd. to acquire full ownership of SECP, which is subject to regulatory approval, and the acquisition is expected to be completed by the end of 2024.
Erwin Ciputra, Chairman, President and CEO of Chandra Asri Group, stated that all business decisions made by the company are intended to benefit Indonesia. «Chandra Asri Group is committed to being a growth partner for Indonesia. The strategic move to acquire SECP assets is one of our contributions to the development of the domestic industry and Indonesia’s economic growth. Furthermore, this acquisition aligns with Chandra Asri Group’s growth strategy to go global, expanding our business in the energy, chemical and infrastructure sectors not only in Indonesia but also abroad,” he stated.
The goal of this corporate action is to help Indonesia improve its energy resilience and meet the growing demand for chemicals.
Through SECP, which is one of the largest oil refineries and trading centers in the world, Chandra Asri Group will source petroleum products, such as gasoline, jet fuel, diesel and bitumen, to support various industries in Indonesia. Additionally, Chandra Asri Group will help fill gaps in the supply of chemicals, such as MEG, polyols and ethylene, propylene and styrene monomers, to support manufacturing processes in the country. This will guarantee the country’s energy supply and reduce dependence on foreign countries.
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«This acquisition is expected to have a positive impact on the Indonesian economy. Profits generated by SECP will be repatriated and reinvested for the development of the domestic industry, contributing significantly to national tax revenues from corporate and individual taxes,” Erwin explained.
Erwin added: “In addition, the expansion will create new employment opportunities in the country, as a new company will be created to act as the back-end of the SECP. This operation will rationalize processes, improve efficiency and generate employment in various sectors. By focusing on operational excellence and innovation, the new company will strengthen the value chain, contributing to Indonesia’s economic growth and ensuring that the benefits are felt throughout the community.”
Chandra Asri Group’s expansion in the ASEAN region is also crucial to increasing economic efficiency. With a projected compound annual growth rate (CAGR) of 4.5% in 2024 and a combined Gross Domestic Product (GDP) of approximately $4.5 trillion in 2030, ASEAN presents a significant opportunity for Indonesian companies. This growth rate indicates a strong and dynamic market in which Indonesian companies can establish a stronger presence.
By leveraging strategic partnerships, investing in innovative practices and enhancing operational capabilities, Chandra Asri Group can effectively tap into ASEAN’s diverse markets. This expansion will contribute to the overall economic development of Indonesia and allow the Chandra Asri Group to compete more effectively in the global market.
The goal of this corporate action is to help Indonesia improve its energy resilience and meet the growing demand for chemicals.
Beyond economic aspects, this partnership is also expected to foster collaboration and knowledge sharing through cross-fertilization of best practices. SECP has advanced technology and innovations, managed by experienced professionals, which will facilitate the transfer of knowledge and technology. In return, the Chandra Asri Group, with over 32 years of manufacturing experience, can bring valuable knowledge and operational experience to strengthen both parties. The exchange of best practices between SECP and Chandra Asri Group will allow both companies to optimize their processes and capabilities.
Additionally, the collaboration with Glencore, one of the world’s leading natural resources companies, will further drive innovation, ensuring the partnership remains competitive in the global market. This synergy is also expected to enhance Indonesia’s position on the global stage, demonstrating the country’s ability to lead cutting-edge industrial practices.
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