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Continuing its commitment to education, every year PT Chandra Asri Petrochemical Tbk targets the construction of a poor condition PAUD school in the Ring 1 area around the company's operations. In 2020, Chandra Asri and the Happy Hearts Indonesia Foundation began the construction of the PAUD Cahaya Bintang with the groundbreaking ceremony on 8 December 2020. PAUD Cahaya Bintang which is located in Kamurang Pal Village, Grogol Indah, Anyar District, Serang Regency is the 4th PAUD to be built. The groundbreaking ceremonial activity was carried out with a limited number of invitations and enforced the COVID-19 protocol.
The construction of the PAUD Cahaya Bintang is targeted to be completed in early 2021. This activity has received direct appreciation from government officials, as a concrete manifestation of the Company's concern for education development in the Anyar District area.
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PT Chandra Asri Petrochemical Tbk held an Extraordinary General Meeting of Shareholders (EGMS) by implementing strict health protocols. Taking place at Wisma Barito Pacific, Jakarta, the meeting on 7 December 2020 was attended by the Board of Commissioners and Directors of Chandra Asri.
During the meeting, the merger plan between Chandra Asri and its subsidiary, PT Styrindo Mono Indonesia was approved. The objective of this merger is to create a petrochemical company that is more integrated in Indonesia and ready to compete with the major regional petrochemical players who are largely integrated. The merger, which will be effective on 1 January 2021 is expected to increase the efficiency and effectiveness of the company's business activities.
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PT Styrindo Mono Indonesia, a subsidiary of PT Chandra Asri Petrochemical Tbk, won two Platinum medals at the ICQCC (45th International Convention on Quality Control Circles) which was held virtually on 1-3 December 2020 in Dhaka, Bangladesh. The two Platinum Awards were obtained by SGA Delta Force (Engineer level) with the title "Reduce Index of Industrial Water in SMI Plant from 0.911 to 0.800 Tons / SM Product within 10 Months" and SGA Snake Polymer (Operator level) with the title "Eliminate 6.0%. Internal Out-of-Range pH Measurement at IPAL-2 (SMI WWTP) by end of 2019”.
By obtaining these awards, the enthusiasm and ability of SGA in problem solving at both the Operator and Engineer levels are expected to increase and become an inspiration for other teams.
At the 9th Indonesia Operational Excellence Conference (OPEXCON) & Award organized by Shift Indonesia on 25 November 2020, PT Chandra Asri Petrochemical Tbk achieved Gold and Bronze Awards in manufacturing.
The Gold Award is presented to the SGA Block Copo (Engineer) represented by Ghillang Prasetya with the title "Reduce Product Defect due to Milky Pellet Problem at Extruder # 1B from 3.69% to 0.06% within 12 Months" and the Bronze Award is awarded to the SGA Exver (Operator) represented by Rizal Effendi with the title "Eliminate Cost Loss from HC Loss at Product Purge Bin Train 2 within 9 months".
On 20 November 2020, PT Chandra Asri Petrochemical and Star Energy signed a memorandum of understanding virtually covering the cooperation to supply Chandra Asri's HDPE (High-density polyethylene) material for Star Energy's pipeline application. In this collaboration, Chandra Asri's HDPE material will replace the imported HDPE material previously used by Star Energy which can support government programs in increasing TKDN (Domestic Content Level) and saving foreign exchange. The cooperation between Chandra Asri and Star Energy is expected to be able to strengthen the national industry, especially the synergy of companies under Barito Group.
On 19 November 2020, PT Chandra Asri Petrochemical Tbk was awarded as the Rural, Urban Land, and Building Model Taxpayer (PBB-P2) in Cilegon. This award is Chandra Asri's concrete manifestation of paying taxes while also participating in building and increasing Cilegon's regional income. Rural, Urban Land, and Building Tax (PBB-P2) itself are useful for helping the rate of growth of regional income, starting from development, social services, and the construction of public facilities and regional infrastructure.
PT Chandra Asri Petrochemical Tbk won two platinum medals at the TKMPN (National Quality & Productivity Gathering) XXIV event which was held virtually on 15-18 November 2020. Both platinum medals were acquired for the two Chandra Asri projects this year, namely SGA Tenggo with the title "Reduce Chemical Cost Lost in Ethylene Plant Within 7 Months by Eliminating Excess-DMDS Consumption" and SGA Clean with the title "Eliminating Maintenance Cost Loss by Increasing MTBF in SWRO Unit for 10 Months".
This is a new milestone for Chandra Asri in winning platinum medals for all the teams who participate. These awards are expected to increase the enthusiasm and ability of SGA both in operator level and engineer level.
During the COVID-19 pandemic, PT Chandra Asri Petrochemical Tbk held an Annual Public Expose on 13 November 2020 virtually. This online event was attended by the Board of Commissioners and Directors of Chandra Asri.
Chandra Asri (IDX: TPIA) managed to record performance improvements during the third quarter of 2020 even though the COVID-19 pandemic is still ongoing. Chandra Asri has also completed the construction of several strategic projects which are the operations of the Methyl Tert-butyl Ether (MTBE) and Butene 1 (B1) plants to support the independence of the country's petrochemical industry. The new investment in enclosed ground flare was also completed in supporting environmental and social sustainability factors.
On 5 October 2020, PT Chandra Asri Petrochemical Tbk and Royal Vopak (Vopak), the world’s leading independent tank storage company, have signed a Letter of Intent (LOI) to set up a joint venture company for collaboration in the industrial infrastructure business in Cilegon, Banten Province, Indonesia.
Chandra Asri and Vopak will explore exciting storage opportunities in supply networks, to help grow existing petrochemical value chains and lay the foundations for an expanded industrial cluster in Cilegon, Banten Province, Indonesia. The finalization of this LOI and the setting up of the joint venture company is subject to final terms and conditions, including customary regulatory and shareholder approvals.
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Continuing its commitment to sustainability, PT Chandra Asri Petrochemical Tbk is now ready to operate Enclosed Ground Flare (EGF), a smokeless flare technology at its petrochemical complex in Cilegon, Banten. Reaches a total investment of US$ 14 million, EGF was built to minimize the social and environmental impacts of its plant operations.
Being built since 2018, EGF is capable of burning 220 tons of hydrocarbons per hour using a closed combustion method without causing heat and noise. From an environmental perspective, EGF is designed to carry out the combustion process completely so that no hydrocarbons from combustion are discharged into the air. From a social perspective, EGF is able to reduce noise while eliminating flame and smoke.
On 16 September 2020, PT Chandra Asri Petrochemical Tbk inaugurated the Banten Regional Police extension building which has been built since 2019. The inauguration of the 2,000m2 extension building grant consisting of three floors was carried out virtually from the Banten Regional Police which is connected to the Chandra Asri office. During the COVID-19 pandemic, this event continues to implement the applicable health protocol.
This extension building grant is hoped to increase the morale of the entire Banten Police and its apparatus in carrying out the task of providing the best service to the community.
As its commitment to support hospitals in providing medical equipment during the COVID-19 pandemic, PT Chandra Asri Petrochemical Tbk donated medical equipment to the Cilegon City Government for handling this pandemic. The distribution of this medical equipment was carried out on 10 September 2020 through the Cilegon COVID-19 Task Force and the Cilegon Regional Disaster Management Agency which was then distributed to the Cilegon City Government and Cilegon Regional Hospital.
The assistance provided by Chandra Asri included 150 pieces of a protective bodysuit, 40 pieces of KN95 mask, 1,260 pieces of a surgical mask, 1,100 packs of a rapid test kit, and 200 pieces of gloves. Chandra Asri also handed over medical equipment such as 50 pieces of a protective bodysuit, 2000 pieces of a surgical mask, 100 packs of a rapid test kit, and 200 pieces of gloves to the Cilegon Police and the Banten Military Resort Commander.
On 8 September 2020, PT Chandra Asri Petrochemical Tbk have commenced operation of its new MTBE (Methyl Tert-butyl Ether) and B1 (Butene 1) plants, first of their kind in Indonesia. The plant operations are in line with the Indonesian Government target to substitute import by 35% until 2022. Capacity of MTBE (Methyl Tert-butyl Ether) plant is 128 KTA, tapping into the octane booster market that is still reliant on import. Meanwhile, capacity of B1 (Butene 1) is 43 KTA, where 33 KTA will be absorbed by Chandra Asri’s own operation while the rest is targeted for domestic market.
Construction of Chandra Asri’s MTBE and B1 plants was done by Toyo Engineering Corporation and PT Inti Karya Persada Tehnik since 2018. Both plants are using Lummus Technology, one of the most advanced petrochemical processing technology in the world.
PT Chandra Asri Petrochemical Tbk, Indonesia’s largest integrated petrochemical company, successfully completed the issuance of a 1 Trillion Rupiah Bond on 26 August 2020. The issuance was 100% fully subscribed. It is the largest IDR bond issuance executed by the Company to date. This transaction marks Chandra Asri’s continued success in tapping the domestic fixed income market, as part of the company’s Shelf Offering Program III approved by the Financial Services Authority (OJK) with a 5 trillion Rupiah funding target over 2020 to 2022.
The bond issuance by Chandra Asri with a rating of idAA- from Pefindo is considered to meet the very strong long-term financial commitment of debt securities, relative to other Indonesian obligors.
The issuance will be used to fund Chandra Asri’s working capital as part of its Integration Master Plan, with its Methyl Tert-butyl Ether (MTBE) and Butene-1 plant growth project expected to come onstream soon in September 2020.
On 25 August 2020, PT Chandra Asri Petrochemical Tbk together with PT Kilang Pertamina Internasional, a subsidiary of PT Pertamina (Persero), signed a Head of Agreement (HoA) as a form of cooperation in developing the petrochemical business in Indonesia.
The HoA signing was carried out by the President Director of KPI, Ignatius Tallulembang and the President Director of Chandra Asri, Erwin Ciputra. This cooperation refers to President Joko Widodo's direction to encourage the construction of factories that produce petrochemical import substitutions and expected to develop the petrochemical business in the country.
During the COVID-19 pandemic, PT Chandra Asri Petrochemical Tbk held an Annual General Meeting of Shareholders (AGMS) on 5 August 2020 for the financial year of 2019 by implementing strict health protocols. Located at Wisma Barito Pacific, Jakarta, this meeting was chaired by Mr. Djoko Suyanto, as President Commissioner, and was attended by the Board of Commissioners and Directors of Chandra Asri. On this occasion, shareholders approved all the subjects discussed, including the use of 27.84% of 2019 net income for interim dividends which were fully attributable to shareholders in 2019, and thus the interim dividends were final. This meeting has also conveyed the realization of the use of proceeds from several corporate actions, in this case, bonds, which have been implemented.
In connection with the COVID-19 pandemic that is currently hitting the world, including Indonesia, Chandra Asri calculates its operations and business plans carefully, while still prioritizing the health and safety of employees and the surrounding environment. To date, Chandra Asri's plant continues to operate normally and available to serve customer needs optimally.
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On 29 July 2020, PT Chandra Asri Petrochemical Tbk held a socialization about Clean and Healthy Behavior in an effort to tackle COVID-19 for community of Kampung Cilodan, Gunung Sugih Sub-District, Ciwandan District. This socialization aims to increase the awareness and understanding of citizens regarding the steps that can be taken to prevent the chain of transmission of COVID-19 in the community.
Activities carried out by applying the COVID-19 protocol, including mandatory use of masks for the participants, arrangement seats with distance, as well as checking the temperature and use of hand sanitizers before entering the place. In addition to the socialization activities, spraying disinfectant was also carried out in the area of the Kampung Cilodan area, both at public facilities, as well as in the houses of community.
As a company that promotes the principle of sustainability, on 22 July 2020, PT Chandra Asri Petrochemical Tbk together with MUI Banten Province signed a Memorandum of Understanding as a form of cooperation in donating thin-wall plastic containers as sacrificial meat packaging. Located at the MUI Banten Office, Serang, the collaboration was carried out in implementing innovative food containers that can be reused, recycled, hygienic, and halal certified.
Chandra Asri collaborated with PT Dadap Plasindo, a plastic packaging product manufacturers in Indonesia, to produce thin-wall plastic packaging that can be used as a container in the distribution of sacrificial meat. Through this donation, 65,250 pieces of plastic containers were distributed by MUI to eight districts and cities in Banten.
As one of the major players in the industry in Indonesia, PT Chandra Asri Petrochemical Tbk is fully committed to continuing the support for the growth of the downstream petrochemical industry. On 20 July 2020, Chandra Asri received a loan of US$ 195 million or Rp2.9 trillion from DBS Bank to support the company's working capital needs in the form of trade financing and revolving credit facilities (RCF). This loan is also an effort to reactivate industrial growth by Chandra Asri to support national economic growth.
Chandra Asri has used digital corporate banking services that are expected to meet the financial needs of customers, especially during the pandemic through digitizing the banking transaction process so that it can continue to prioritize aspects of sustainability in running business operations. This collaboration has proven the mutual trust that DBS has established in Chandra Asri.
PT Chandra Asri Petrochemical Tbk is collaborating with Siemens and Bentley to carry out a comprehensive digital transformation in line with the vision of the Indonesian government to realize industry 4.0. The first digital twin system in the petrochemical industry in Indonesia, will be implemented at the Chandra Asri plant.
Chandra Asri's petrochemical complex will have a twin digital system that uses automation for operational data, asset documentation and information management systems. This increases operational efficiency and ensuring data accuracy that will be used in decision making by management in the plant area. This digital twin development will take place in phases, from 2020 – 2025, and will include digital transformation of Chandra Asri's second petrochemical complex which is currently under construction.
