On 5 October 2020, PT Chandra Asri Petrochemical Tbk and Royal Vopak (Vopak), the world’s leading independent tank storage company, have signed a Letter of Intent (LOI) to set up a joint venture company for collaboration in the industrial infrastructure business in Cilegon, Banten Province, Indonesia.
Chandra Asri and Vopak will explore exciting storage opportunities in supply networks, to help grow existing petrochemical value chains and lay the foundations for an expanded industrial cluster in Cilegon, Banten Province, Indonesia. The finalization of this LOI and the setting up of the joint venture company is subject to final terms and conditions, including customary regulatory and shareholder approvals.
Continuing its commitment to sustainability, PT Chandra Asri Petrochemical Tbk is now ready to operate Enclosed Ground Flare (EGF), a smokeless flare technology at its petrochemical complex in Cilegon, Banten. Reaches a total investment of US$ 14 million, EGF was built to minimize the social and environmental impacts of its plant operations.
Being built since 2018, EGF is capable of burning 220 tons of hydrocarbons per hour using a closed combustion method without causing heat and noise. From an environmental perspective, EGF is designed to carry out the combustion process completely so that no hydrocarbons from combustion are discharged into the air. From a social perspective, EGF is able to reduce noise while eliminating flame and smoke.
On 16 September 2020, PT Chandra Asri Petrochemical Tbk inaugurated the Banten Regional Police extension building which has been built since 2019. The inauguration of the 2,000m2 extension building grant consisting of three floors was carried out virtually from the Banten Regional Police which is connected to the Chandra Asri office. During the COVID-19 pandemic, this event continues to implement the applicable health protocol.
This extension building grant is hoped to increase the morale of the entire Banten Police and its apparatus in carrying out the task of providing the best service to the community.
As its commitment to support hospitals in providing medical equipment during the COVID-19 pandemic, PT Chandra Asri Petrochemical Tbk donated medical equipment to the Cilegon City Government for handling this pandemic. The distribution of this medical equipment was carried out on 10 September 2020 through the Cilegon COVID-19 Task Force and the Cilegon Regional Disaster Management Agency which was then distributed to the Cilegon City Government and Cilegon Regional Hospital.
The assistance provided by Chandra Asri included 150 pieces of a protective bodysuit, 40 pieces of KN95 mask, 1,260 pieces of a surgical mask, 1,100 packs of a rapid test kit, and 200 pieces of gloves. Chandra Asri also handed over medical equipment such as 50 pieces of a protective bodysuit, 2000 pieces of a surgical mask, 100 packs of a rapid test kit, and 200 pieces of gloves to the Cilegon Police and the Banten Military Resort Commander.
On 8 September 2020, PT Chandra Asri Petrochemical Tbk have commenced operation of its new MTBE (Methyl Tert-butyl Ether) and B1 (Butene 1) plants, first of their kind in Indonesia. The plant operations are in line with the Indonesian Government target to substitute import by 35% until 2022. Capacity of MTBE (Methyl Tert-butyl Ether) plant is 128 KTA, tapping into the octane booster market that is still reliant on import. Meanwhile, capacity of B1 (Butene 1) is 43 KTA, where 33 KTA will be absorbed by Chandra Asri’s own operation while the rest is targeted for domestic market.
Construction of Chandra Asri’s MTBE and B1 plants was done by Toyo Engineering Corporation and PT Inti Karya Persada Tehnik since 2018. Both plants are using Lummus Technology, one of the most advanced petrochemical processing technology in the world.
PT Chandra Asri Petrochemical Tbk, Indonesia’s largest integrated petrochemical company, successfully completed the issuance of a 1 Trillion Rupiah Bond on 26 August 2020. The issuance was 100% fully subscribed. It is the largest IDR bond issuance executed by the Company to date. This transaction marks Chandra Asri’s continued success in tapping the domestic fixed income market, as part of the company’s Shelf Offering Program III approved by the Financial Services Authority (OJK) with a 5 trillion Rupiah funding target over 2020 to 2022.
The bond issuance by Chandra Asri with a rating of idAA- from Pefindo is considered to meet the very strong long-term financial commitment of debt securities, relative to other Indonesian obligors.
The issuance will be used to fund Chandra Asri’s working capital as part of its Integration Master Plan, with its Methyl Tert-butyl Ether (MTBE) and Butene-1 plant growth project expected to come onstream soon in September 2020.
On 25 August 2020, PT Chandra Asri Petrochemical Tbk together with PT Kilang Pertamina Internasional, a subsidiary of PT Pertamina (Persero), signed a Head of Agreement (HoA) as a form of cooperation in developing the petrochemical business in Indonesia.
The HoA signing was carried out by the President Director of KPI, Ignatius Tallulembang and the President Director of Chandra Asri, Erwin Ciputra. This cooperation refers to President Joko Widodo's direction to encourage the construction of factories that produce petrochemical import substitutions and expected to develop the petrochemical business in the country.
During the COVID-19 pandemic, PT Chandra Asri Petrochemical Tbk held an Annual General Meeting of Shareholders (AGMS) on 5 August 2020 for the financial year of 2019 by implementing strict health protocols. Located at Wisma Barito Pacific, Jakarta, this meeting was chaired by Mr. Djoko Suyanto, as President Commissioner, and was attended by the Board of Commissioners and Directors of Chandra Asri. On this occasion, shareholders approved all the subjects discussed, including the use of 27.84% of 2019 net income for interim dividends which were fully attributable to shareholders in 2019, and thus the interim dividends were final. This meeting has also conveyed the realization of the use of proceeds from several corporate actions, in this case, bonds, which have been implemented.
In connection with the COVID-19 pandemic that is currently hitting the world, including Indonesia, Chandra Asri calculates its operations and business plans carefully, while still prioritizing the health and safety of employees and the surrounding environment. To date, Chandra Asri's plant continues to operate normally and available to serve customer needs optimally.
On 29 July 2020, PT Chandra Asri Petrochemical Tbk held a socialization about Clean and Healthy Behavior in an effort to tackle COVID-19 for community of Kampung Cilodan, Gunung Sugih Sub-District, Ciwandan District. This socialization aims to increase the awareness and understanding of citizens regarding the steps that can be taken to prevent the chain of transmission of COVID-19 in the community.
Activities carried out by applying the COVID-19 protocol, including mandatory use of masks for the participants, arrangement seats with distance, as well as checking the temperature and use of hand sanitizers before entering the place. In addition to the socialization activities, spraying disinfectant was also carried out in the area of the Kampung Cilodan area, both at public facilities, as well as in the houses of community.
As a company that promotes the principle of sustainability, on 22 July 2020, PT Chandra Asri Petrochemical Tbk together with MUI Banten Province signed a Memorandum of Understanding as a form of cooperation in donating thin-wall plastic containers as sacrificial meat packaging. Located at the MUI Banten Office, Serang, the collaboration was carried out in implementing innovative food containers that can be reused, recycled, hygienic, and halal certified.
Chandra Asri collaborated with PT Dadap Plasindo, a plastic packaging product manufacturers in Indonesia, to produce thin-wall plastic packaging that can be used as a container in the distribution of sacrificial meat. Through this donation, 65,250 pieces of plastic containers were distributed by MUI to eight districts and cities in Banten.