PT Chandra Asri Pacific Tbk (Chandra Asri Group), a leading chemicals and infrastructure solutions company in Indonesia, has signed a Memorandum of Understanding (MoU) with Perum Jasa Tirta II (PJT II) to conduct a feasibility study regarding green energy potential through the development of power plants. Solar power (PLTS) and hydroelectric power plants (PLTA). Power from these facilities will be distributed, among others, to the world-class chlor-alkali and ethylene dichloride (CA-EDC) plant currently being developed by Chandra Asri Group which has a total electricity requirement of 340 MW. This research aims to promote the implementation of new renewable energy and support Indonesia’s goal of achieving net-zero emissions by 2060.
This signing was carried out by Eddy Revai, Director of Legal, External Affairs and Circular Economy of Chandra Asri Group; Rolly Aryawan, Chief Supply Chain Officer, Chandra Asri Group; and Dikdik Permadi Yovana, Business Development Manager of Perum Jasa Tirta II, on Monday, April 1, 2024, in Jakarta.
Perum Jasa Tirta II is a state-owned company responsible for water resources management, providing water to communities and industries in the regions of West Java and Jakarta. PJT II also operates Jatilohor Dam in Purwakarta and Karian Dam in Lebak (Banten). In addition to power plants, this study will also explore the potential development of clean water supply systems (SPAB) in collaboration with Chandra Asri Group.
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As a growth partner of Indonesia, this feasibility study is also expected to create new business opportunities in developing new renewable energy for sustainability. 400 thousand tons of caustic soda and more than 500 thousand tons of ethylene dichloride annually. This plant plays a crucial role in meeting the growing demand for caustic soda and ethylene dichloride products not only in Indonesia but also in Southeast Asia. To operate this station, an initial electrical supply of 140 megawatts will be required, to be increased by 200 megawatts in 2026, bringing the total electrical capacity required to 340 megawatts.
“Perum Jasa Tirta II was commissioned by the government under Presidential Regulation No. 1000,” added Dikdik Permadi Yovana, Business Development Manager at Perum Jasa Tirta II.
This plant plays a crucial role in meeting the growing demand for caustic soda and ethylene dichloride products not only in Indonesia but also in Southeast Asia.
There is no doubt that the Citarum Watershed Management Act No. 25 of 2022, parts of Ciliwung-Cisadane, Cimanuk-Cisanggarung, Cidanau-Ciujung-Cidurian and Seputih-Sekampung has great potential in developing new renewable energy sources (EBT) to support the government’s program in achieving The goal of net zero emissions by 2060. With this possibility, we can also cooperate with private entities such as Chandra Asri Group to support the use of environmentally friendly energy in the production process. Therefore, this cooperation plan represents a strategic step for both parties.
Caustic soda is an important raw material for various industries in Indonesia, such as alumina mining, nickel mining, water treatment, textile production, paper production, soap and detergent production. For its part, ethylene dichloride is a crucial ingredient in the production of polyvinyl chloride (PVC), which has various applications in construction and packaging. The construction of the CA-EDC plant could be a catalyst for Indonesia’s ambition to play a leading role. Its role in the global electric vehicle supply chain, as demand for caustic soda continues to rise alongside growing adoption of electric vehicles around the world.
