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.
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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.
As one of the major players in the industry in Indonesia, PT Chandra Asri Petrochemical Tbk is fully committed to continuing the support for the growth of the downstream petrochemical industry. On 20 July 2020, Chandra Asri received a loan of US$ 195 million or Rp2.9 trillion from DBS Bank to support the company's working capital needs in the form of trade financing and revolving credit facilities (RCF). This loan is also an effort to reactivate industrial growth by Chandra Asri to support national economic growth.
Chandra Asri has used digital corporate banking services that are expected to meet the financial needs of customers, especially during the pandemic through digitizing the banking transaction process so that it can continue to prioritize aspects of sustainability in running business operations. This collaboration has proven the mutual trust that DBS has established in Chandra Asri.
PT Chandra Asri Petrochemical Tbk is collaborating with Siemens and Bentley to carry out a comprehensive digital transformation in line with the vision of the Indonesian government to realize industry 4.0. The first digital twin system in the petrochemical industry in Indonesia, will be implemented at the Chandra Asri plant.
Chandra Asri's petrochemical complex will have a twin digital system that uses automation for operational data, asset documentation and information management systems. This increases operational efficiency and ensuring data accuracy that will be used in decision making by management in the plant area. This digital twin development will take place in phases, from 2020 – 2025, and will include digital transformation of Chandra Asri's second petrochemical complex which is currently under construction.
PT Chandra Asri Petrochemical Tbk is continuing its commitment to actively assist the government in handling COVID-19. On 2 July 2020 at the BPBD Cilegon, Banten, the company provided 500 FluQuadri influenza vaccines for medical workers to protect them from the virus transmission. The assistance was delivered through the COVID-19 Task Force of Cilegon City, which will be distributed by the Health Service to all Community Health Centers in the city. These vaccines are expected to increase the immunity of the medical staff who make direct contact with COVID-19 patients.
PT Chandra Asri Petrochemical Tbk, as one of the business which actively involved in assisting the government in handling COVID-19, donated five positive pressure swab booths to protect medical personnel from potential virus infection. This swab booth is an innovative SCG solution that uses a pressure generator to allow the air inside the room to remain clean and sterile when medical personnel examines or take patient samples. This donation was submitted together with the assistance from SCG Indonesia to the National Disaster Management Agency on 10 June 2020 to be distributed to various hospitals.
The corona virus has been declared by WHO as a global pandemic and non-natural disasters in the form of disease outbreaks, so efforts must be taken to prevent cases from increasing.
In the midst of an emergency situation like this, Chandra Asri places the comfort, safety, and health of employees as a top priority. To that end, we apply strict health procedures to prevent the spread of the COVID-19 virus in the Chandra Asri's environment.
