Chandra Asri Group Increases MTBE And Butene-1 Plant Capacity, Supports Import Substitution And Strengthens National Resilience

PT Chandra Asri Pacific Tbk (Chandra Asri Group), a leading energy, chemical, and infrastructure solutions provider in Southeast Asia, has increased the production capacity of its Methyl Tert-butyl Ether (MTBE) and Butene -1 (B1) plant by up to 25%. This capacity expansion forms part of the company’s growth strategy to accelerate import substitution, enhance domestic value creation, and strengthen the resilience of Indonesia’s national petrochemical industry.

This initiative is a continuation of the facility expansion project carried out in collaboration with PT Inti Karya Persada Tehnik (IKPT) under an Engineering, Procurement, and Construction (EPC) contract signed in December 2024. The MTBE and Butene-1 plant is located within the Company’s integrated petrochemical complex in Cilegon, Banten, and has been in operation since 2020.

Following a series of technical and operational preparations, including trial runs conducted in late February 2026, the capacity increase has now been successfully realized, with the facility operating optimally and reliably. Through this achievement, Chandra Asri Group further strengthens its position as the sole domestic producer of MTBE and Butene-1 in Indonesia while supporting the availability of strategic raw material supplies for various domestic industrial sectors.

President Director of Chandra Asri Group, Erwin Ciputra, stated that the capacity expansion reflects the Company’s long-term commitment to strengthening the foundation of Indonesia’s national industry. “This capacity increase represents a strategic step by Chandra Asri Group to strengthen the supply resilience of industrial raw materials in Indonesia. As the sole producer of MTBE and Butene-1 in the country, we are committed to supporting reliable supply availability. Through this production capacity enhancement, Chandra Asri Group not only supports import substitution efforts but also contributes to building a stronger, more competitive, and sustainable petrochemical value chain. In the long term, we hope that the presence of this facility will help strengthen the independence of Indonesia’s national industry while opening opportunities for the country to enhance its position within the regional petrochemical supply chain.”

MTBE is a key component used as an octane booster in gasoline to improve combustion quality and fuel efficiency. Meanwhile, Butene-1 is an important comonomer used in polyethylene production, a key raw material widely applied across various industries, including manufacturing, packaging, and consumer products. With higher production capacity, the Company not only strengthens domestic supply chain stability but also opens opportunities to expand regional market penetration through exports of high value-added products.

Through this capacity expansion, Chandra Asri Group reaffirms its commitment to strengthening Indonesia’s downstream petrochemical industry structure, improving foreign exchange efficiency through reduced imports, maintaining the stability of raw material supply for the energy and manufacturing sectors, and enhancing the competitiveness of Indonesia’s national industry at both regional and global levels.