Strategic Acquisition: Chandra Asri Partners with Glencore to Acquire SECP

JAKARTA, RAKYAT NEWS– PT Chandra Asri Pacific Tbk, known as the Chandra Asri Group, has announced a significant acquisition of Shell Energy and Chemicals Park (SECP) in Singapore, in partnership with Glencore plc. This move is set to enhance Chandra Asri’s footprint in the energy and chemicals sector.

The acquisition agreement was signed with Shell Singapore Pte. Ltd., covering the complete ownership of SECP. Regulatory approval for this transaction is anticipated to be finalized by the end of 2024.

Erwin Ciputra, the CEO of Chandra Asri Group, stated that the company’s strategic decisions aim to provide substantial benefits to Indonesia. “Our commitment is to be a growth partner for Indonesia,” he emphasized.

Ciputra elaborated that acquiring SECP aligns with Chandra Asri’s growth strategy to expand its operations beyond Indonesia, particularly in the energy, chemical, and infrastructure sectors.

This acquisition is also crucial for supporting Indonesia’s energy resilience and addressing the growing demand for chemical products within the country. SECP is recognized as one of the largest oil refineries and trading centers globally.

Chandra Asri plans to supply a range of petroleum products, including gasoline, jet fuel, gas oil, and bitumen, to support various industries in Indonesia. This will also help mitigate the supply shortages of essential chemical products, such as MEG, polyols, and monomers like ethylene and propylene.

By bolstering local supply chains, Chandra Asri aims to ensure energy security and reduce dependency on foreign entities for critical resources.

He believes that the acquisition will positively impact Indonesia’s economy. Profits generated from SECP are expected to be repatriated and reinvested into local industry development, significantly contributing to national tax revenues.

The expansion is projected to create new job opportunities domestically. A new company will be established to manage the operational aspects of SECP, focusing on streamlining processes and enhancing efficiency.

The establishment of this new company will also provide various employment opportunities, strengthening the economic fabric of Indonesia.

“This initiative aims to create jobs and foster operational excellence,” Ciputra stated.

With a projected Compound Annual Growth Rate (CAGR) of 4.5% in 2024 and an estimated combined GDP of approximately $4.5 trillion by 2030, ASEAN presents significant business opportunities for Indonesia.

He noted that this expansion would not only bolster Indonesia’s economic development but also enable Chandra Asri to compete more effectively in the global market.

The acquisition of SECP brings advanced technology and innovative practices, managed by experienced professionals. This will facilitate knowledge transfer and operational enhancements between the two entities.

The collaboration with Glencore, a leading global resource company, is expected to drive further innovation, ensuring the partnership remains competitive on a global scale. This synergy could elevate Indonesia’s position in the global industrial landscape.

The acquisition of Shell Energy and Chemicals Park marks a pivotal step for Chandra Asri Group, positioning it to contribute significantly to Indonesia’s economic growth and industrial capabilities. (Uki Ruknuddin)