Chandra Asri Expands its Footprint by Investing in Krakatau Posco Energy up to US$200 Mio

PT Chandra Asri Petrochemical Tbk (Chandra Asri Group) announced a significant investment in the energy infrastructure sector through its majority-owned subsidiary, PT. Krakatau Electrical Power (KDL). The investment is divided into 2 tranches with a value of up to US$200 million. With this investment, KDL's share ownership in PT Krakatau Posco Energy (KPE) becomes 45%. KDL will also co-invest in accordance with its equity stake to support KPE’s planned expansion to construct a new 200-megawatt (MW) power plant once the Final Investment Decision (FID) is taken. The Sales and Purchase Agreement was signed by Nandang Hariana, President Director of KDL and Lee Jeon Hyeok, Senior Executive Vice President of Posco International Corporation. KPE has been well-established since 2011 and supplies electricity to the iron and steel making plant of PT Krakatau Posco (KP), a company led by POSCO in partnership with PT Krakatau Steel (Persero) Tbk, located in the heart of Indonesia’s “Steel City” Cilegon. KPE currently has an existing power plant and supporting infrastructure utilities with capacity of 200 MW that operates using off-gas from KP and is backed by a long-term contractual full offtake agreement that runs until 2038.