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In strengthening the national petrochemical industry, on 11 June 2021, PT Chandra Asri Petrochemical Tbk partnered with PT Bank Mandiri (Persero) Tbk (Bank Mandiri), to sign a new term loan and account receivables financing facility agreement with a total equivalent value of IDR5 trillion. This financing will be used to finance the company's daily operations and support Chandra Asri's working capital requirements.
This partnership with Bank Mandiri demonstrates public confidence in Chandra Asri's solid financial profile. Certainly, innovation and collaboration will continue to be carried out with the best partners to provide superior performance for Indonesia.
By still complying with health protocols, on 8 June 2021, PT Chandra Asri Petrochemical Tbk carried out a Community Awareness activity under the theme of "Building Public Awareness on the Importance of Industrial Gas Pipelines Safety and Security, Disaster Emergency Response Management and Utilization of Non-B3 Waste". Located in Mangunreja Village, this activity is carried out regularly every year to build public awareness of the importance of safety and security for industrial gas pipelines, disaster emergency response management, and the use of Non-B3 waste.
With this Community Awareness activity, the community is expected to be able to be more careful and understand the regulations around gas pipelines and be alert if there are calls for evacuation related to potential disasters. In addition, it is hoped that the community can participate in the management of household waste, both B3 and Non-B3.
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Witnessed virtually by the President of the Republic of Indonesia Joko Widodo, PT Chandra Asri Petrochemical Tbk became one of 19 companies that started implementing the Gotong Royong COVID-19 Vaccination Program for employees on 18 May 2021. This vaccination is a form of Chandra Asri's support in the success of the national vaccination program to accelerate economic recovery.
In the first phase, vaccinations are for 1,000 Chandra Asri employees out of a total of 4,400 employees and family members. The vaccination activity is planned to be held in stages from May to June 2021 depending on vaccine availability.
On 6 May 2021, PT Chandra Asri Petrochemical Tbk completed the issuance of a 1 Trillion Rupiah Bond. This was the first issuance in 2021 that is oversubscribed due to a strong participation interest across retail, banking, and institutional investors. This aligned with Chandra Asri’s resilience in navigating the COVID-19 pandemic smoothly, to deliver solid financial results and maintain its robust balance sheet. The Company reported the full year 2020 net profit after tax of US$51.5 million and US$85 million in Q1 2021.
The issuance was again rated idAA- from Pefindo, the oldest and the most trusted credit rating agency in Indonesia. Pefindo has assessed that Chandra Asri’s capacity to meet its long-term financial commitments on a debt security, relative to other Indonesian obligors, is very strong. The issuance will be used to fund Chandra Asri’s working capital as the Company prepares for sustained growth to meet the requirements of the domestic Indonesian market.
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To boost economic recovery for local communities affected by the COVID-19, PT Chandra Asri Petrochemical Tbk distributed 2,000 food packages containing a total of 5,000 kg of rice produced by local farmers in the Serang Regency.
These basic food packages are distributed in stages on 5-11 May 2021 to the DKI Jakarta Integrated Waste Management Unit, Jakarta Recycle Center officers, the Indonesian Scavenger Association, the Sehati Maju Bersama Self-Help Group, communities around Cilegon City, as well as orphans through several mosques and orphanage foundations in Jakarta and Bogor.
On 19 April 2021, PT Chandra Asri Petrochemical Tbk partnered with PT Bank KEB Hana Indonesia (Hana Bank) to facilitate a US$13 million Green Loan, specifically for the sustainability project that Chandra Asri had completed in its plant in Cilegon, Banten. This innovative and unsecured financing will be used to finance the Company's capital expenditures and other costs related to the completion of sustainability projects that have been carried out.
The two finalized projects that have qualified for the facility are the construction of the Enclosed Ground Flare (EGF) and the roll-out of Electrical Forklifts (E-Forklifts) by Chandra Asri. EGF is capable of burning 220 tons of hydrocarbons per hour completely using a closed combustion method. By replacing the conventional flare, Chandra Asri will be able to reduce noise levels by up to 30% and eliminate heat and light emissions, without any smoke discharge.
The second completed green project was to replace conventional combustion forklifts with electrical forklifts. It has zero emissions and on an annualized basis will reduce 69,455 kg of LPG, save 165,360 liters of diesel, cut 446,472 metric kilograms of carbon dioxide, and fully eliminate nitrogen oxide exhaust.
By implementing strict health protocols, PT Chandra Asri Petrochemical Tbk held an Annual General Meeting of Shareholders (AGMS) for the 2020 Financial Year. Located at Wisma Barito Pacific, Jakarta, the meeting on 15 April 2021 was chaired by Mr. Djoko Suyanto, as President Commissioner and attended by the Board of Commissioners and Directors Chandra Asri in person and virtually.
On this occasion, shareholders approved all the agenda items discussed, including the distribution of cash dividends for the 2020 financial year amounting to 75% of the 2020 net profit of US$51.5 million. The dividend consists of 40% of net income by the company's dividend policy and 35% of the net profit which is a special dividend as a token of the company's appreciation for the support of shareholders during the challenging year 2020.
Although 2020 was a year full of challenges due to the COVID-19 pandemic which affected the Company's overall financial performance, Chandra Asri managed to record a good performance. This is marked by several major achievements in 2020, including the operation of the two units of the first MTBE and Butene-1 plants in Indonesia to increase exports and import substitution. The company also reported sales volume growth from 1.9 million tonnes in 2019 to 2.2 million tonnes in 2020.
On 7 April 2021, PT Chandra Asri Petrochemical Tbk in collaboration with the Happy Hearts Indonesia Foundation (HHI), inaugurated the construction of a PAUD building that were previously unsuitable for teaching and learning activities in the Serang Regency area. Located in Kamurang Pal Village, Grogol Indah Village, Anyar District, Serang Regency, PAUD Cahaya Bintang has stood firm after going through a rebuilding process for approximately four months. The inauguration was also attended by representatives of the Serang Regency Education Office, HIMPAUDI Anyar District and government officials at the Anyar District and Grogol Indah Village.
Along with the inauguration activity, Chandra Asri also donated books to the PAUD Cahaya Bintang, in line with the Literacy Corner program, which aims to open access to reading for school-age children. The school building of the PAUD Cahaya Bintang, which has now been established, is equipped with supporting facilities and playing facilities for students, as well as proper sanitation facilities, which are expected to be the initial capital for teachers and students to gain knowledge.
PT Chandra Asri Petrochemical Tbk contributed to handling COVID-19 for the community around the Company's operational area in Mangunreja Village by distributing food packages. Symbolically, the 500 food packages were handed over by Chandra Asri's management representative to the Head of Mangunreja Village. The distribution of this food assistance has been carried out on 12 March 2021 while adhering to health protocols, which are maintaining a safe distance, wearing masks, and washing hands.
Each food package which includes 2.5 kg of rice, 1 kg of sugar, 1 kg of wheat flour, 2 liters of cooking oil and 5 pieces of instant noodles has been distributed to 500 families in Pengoreng, Cibaga, and Mangunreja Village.
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As its continuous commitment to be a growth partner for the Banten Province community, PT Chandra Asri Petrochemical Tbk with Village Volunteer Foundation (Yayasan Relawan Kampung) and Lebak Regency Government inaugurated an iron girder suspension bridge in Curug Bandung Village, Sukamulya, Cibeber, Lebak on 10 March 2021. After approximately three months of construction, the 60m x 1.6m long bridge is ready to be accessed by the surrounding community.
The bridge adopted a new design from the Ministry of Public Works and Housing (PUPR) with a single pole. It was launched under the name JUDESA (Bridges for Villages). This method is very effective because of the specific and mountainous contours of the land, such as in Curug Bandung Village.
The Curug Bandung bridge is the fourth bridge that has been built by the Company, in the Banten Province area, and the second bridge in Lebak Regency. The inauguration of this bridge is hoped to increase access to community mobility in education, health, economics, and social society.
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The level of student literacy in Indonesia is still very low and uneven. Based on the study of literacy infrastructure in schools about the implementation of the School Literacy Movement (GLS), many schools have not met the standards in literacy facilities and infrastructure such as books, bookshelves, libraries, and the methods used by each school and teacher in improving student literacy in school.
As an effort to support GLS and also increase literacy in schools around ring 1 of the company, PT Chandra Asri Petrochemical Tbk will continue the Literacy Corner program in 2020. On this occasion, the Literacy Corner appointed five schools in the Chandra Asri’s plant area in Cilegon and five schools in the plant area in Puloampel as beneficiaries of this program. Chandra Asri donated 835 books and eight bookshelves to support literacy infrastructure in schools.
On 22 February 2021, PT Chandra Asri Petrochemical Tbk received a US$60 million structured trade facility from DBS Bank. This trade facility is given to Chandra Asri’s subsidiary, Chandra Asri Trading Company Pte. Ltd. (CATCO), to expand export growth of petrochemical products from Indonesia.
While trade facilities are usually straightforward, DBS Bank’s structured trade facility integrates a combination of trade products to deliver a customized solution. It meets the trading needs of the company today and provides the flexibility to Chandra Asri to upgrade the facility quickly as their export growth expands in the future.
As part of the distribution of the 2020 Year End Giving program, PT Chandra Asri Petrochemical Tbk provided a variety of assistance to the people of the Banten area through the Indonesian Red Cross (PMI) and the Regional Disaster Management Agency (BPBD) of Cilegon City, Serang Regency, and Pandeglang Regency in the context of preventing and handling COVID-19 as well as other general social assistance.
A total of 6 multipurpose tents were handed over to PMI and BPBD, Serang District, Cilegon City, and Kab. Pandeglang. This assistance was also given along with regular donations of 500 pcs of rapid test kits and 500 pcs of masks from the company.
Through consistent responses in helping and developing the Banten community, Chandra Asri received an award from Ms. Ratu Tatu Chasanah as the Regent of Serang as a company that consistently cares for and responds to disaster emergencies.
On 8 February 2021, PT Chandra Asri Petrochemical Tbk has partnered with BYD, the global leading manufacturer of electric automobiles, to roll out 53 units of pure electric forklifts, which is Indonesia’s largest electric forklift fleets to date supplied by BYD. The purchases initiated in 2020 have now been fully completed. This investment in electric vehicles is Chandra Asri's real step to focus on sustainability and the principles of Environment, Social, and Governance (ESG), as well as being committed to reducing fossil fuel consumption and reducing emissions from the transportation and mobility side of the Company.
The new e-forklift fleet that is powered by lithium batteries underpins Chandra Asri’s focus on Sustainability, to build a sustainable transportation system, save operational costs and improve its ability to tackle climate change. Each year, the fleet will reduce 69,445 kg of liquified petroleum gas (LPG), save 165,360 liters of diesel (solar), cut 446,472 metric kilograms of carbon dioxide, and eliminate nitrogen oxide exhaust.
As Indonesia’s largest petrochemical producer, on 2 February 2021, PT Chandra Asri Petrochemical Tbk continues its partnership with Total Solar DG to build a second solar panel or photovoltaic (PV) installation in the former Cilegon plan. The rooftop PV installation will power Chandra Asri’s warehouses, laboratory buildings, and charging stations for electrical forklifts, reducing up to 438 tons of CO2 emissions. It is set to produce an addition of 554 megawatt-hours of solar-powered electricity which represents an equivalent of 40 household consumption and will allow saving as much CO2 as planting almost 7,000 trees.
This second solar panel installation is a form of Chandra Asri’s commitment to reduce the carbon footprint generated in each operational area to minimize its impact on the environment. The project follows successful commissioning of Chandra Asri’s first solar system, which was built and commissioned by Total Solar DG in 2019 and has been able to produce 935 megawatt-hours of energy to power Chandra Asri’s office buildings in Cilegon.
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On 2 February 2021, PT Chandra Asri Petrochemical Tbk distributed aid in the form of 100 food packages to flood-affected communities in Patia District, Pandeglang Regency. Located at the Patia District Office, the distribution was carried out by representatives of the Chandra Asri CSR team and received directly by Mr. Cecep Rohman as the Head of Patia Sub-district. This assistance is one of the fund allocations collected from donations from Chandra Asri's employees in the Year End Giving 2020 program.
Together with PMI Banten Province, PMI Pandeglang Regency, and PMI Patia Subdistrict as the distributor of assistance provided by the company, the CSR team took part in the distribution of 50 food packages for residents in one of the most affected villages, namely Idaman Village. This food package includes 2.5 kg of rice, 2 liters of cooking oil, 1 kg of sugar, 5 pcs of instant noodles, and 1 kg of wheat flour, and is packaged using a non-woven bag made from the company's product, PP Trilene HS35NW. Apart from Idaman Village, this food package was also distributed through PMI to another most affected area, namely Ciawi Village, with a total of 50 food packages.
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On 27 January 2021, the CSR team representing the company visited the Rumah Pintar Yatim & Dhuafa Al-Ikhlas Foundation, assisted by Mr. Heru Wahyono who is an employee of Chandra Asri. In addition to serving as the Board of Trustees, Mr. Heru also gave his house for the activities of the Rumah Pintar Foundation which has become a place to learn for around 40 orphans and children living around the Grand Pesona, Kertasana Village, Bojonegara District.
As a support for the social activities carried out by employees, the company also provides assistance in the form of educational supplies consisting of reading books (general and religious), Al-Quran, carpets, printers, standing boards, and 200 masks to support teaching and learning activities.
On 11 January 2021, PT Chandra Asri Petrochemical Tbk has partnered with Ecolab, the global leader in water solutions and services, to implement its state-of-the-art Green Chemistry technologies, to embed world-class safety and environmental standards. The partnership reaffirms Chandra Asri’s commitment to Sustainability, and reiterates the importance of Environmental, Social and Governance factors in the Company’s strategy and DNA.
The deployment of Green Chemistry matched with local and global expertise will deliver continuous improvement to Chandra Asri’s environmental performance. On an annualized basis, it will reduce 92.2 million gallons of water consumption, save 6 million kilowatt hours of energy, mitigate 2100 metric tonnes of carbon dioxide, lower wastewater production by 472,000 tonnes, and cut down Nitrogen Oxide exhaust gas by 75%.
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PT Chandra Asri Petrochemical Tbk provides 15 units of fiber boats and 28 units of ketinting machines to 43 fishermen in Pangaradan Village, Anyar District, Serang Regency, and Tanjung Leneng, Ciwandan District, Cilegon City on 15 December 2020. The ceremony was held on the coast of Pangaradan by implementing the COVID-19 health protocol as recommended by the local government and was attended directly by the Head of the Banten Police, Banten Military Resort Commander, Banten Commander of the Indonesian Navy Base, the Regent of Serang, and other government officials.
On the same occasion, Chandra Asri also distributed assistance in the form of food packages as a form of company concern during the COVID-19 pandemic as well as the west wind season which limits the opportunities for fishermen to go to sea. The company will also invite fishermen to collect plastic waste from the ocean. Furthermore, the waste that has been collected will be further processed using the pyrolysis method into fuel oil (Plast fuel) which can be used as a substitute for gasoline or diesel which can be used by fishermen to go to sea.
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On 9 December 2020, PT Chandra Asri Petrochemical Tbk partnered with KASIKORNBANK (Kbank), one of Thailand’s leading bank and a market-leader for Trade Finance, to extend and expand a 1.6 Billion Thai Baht (US$50 million-equivalent) trade finance and committed unsecured revolving credit facility. This is the first ever offshore facility of this type extended by Kbank to a customer outside of Thailand, in recognition of the strong credit quality of Chandra Asri, and to support Indonesia’s economic and domestic industrial growth amid the challenges of the COVID-19 pandemic.
By obtaining this unsecured and committed Trade Finance and Revolving Credit Facility from Kbank, which further boosts the company’s financial resilience, improves cost competitiveness and flexibility, and maintains Chandra Asri’s strong position to continue serving its customers and the domestic markets.
