Latham Advises Chandra Asri Group on Partnership With Danantara and INA on CA-EDC Project

Latham & Watkins has advised Chandra Asri Group on the signing of the conditional share subscription agreement with Danantara Indonesia and the Indonesia Investment Authority (INA) to support the development of the Chlor Alkali–Ethylene Dichloride (CA-EDC) project in Cilegon, Banten, developed and operated by the Chandra Asri Group. This CA-EDC plant development is part of a national strategic project focused on producing essential raw materials for upstream and downstream industries. Under the agreed investment structure, Danantara Indonesia and INA will jointly invest a total of US$200 million.

With an investment value of approximately US$800 million, this project is a strategic step in reducing dependence on imports of caustic soda and ethylene dichloride, which are essential raw materials for various industrial sectors, and supports the downstreaming agenda to drive Indonesia's long-term economic transformation. This facility will be managed by PT Chandra Asri Alkali, a subsidiary of the Chandra Asri Group, with a target operational start date of early 2027.

The Latham team was led by Singapore partners Marcus Lee and Timothy Hia, with associate Elisabeth Ong.