Chandra Asri & Nippon Shokubai Group Sign Memorandum of Understanding on Green Chemical Business Opportunities

Jakarta – PT Chandra Asri Petrochemical Tbk (Chandra Asri), Nippon Shokubai Co., LTD. (NSCL), and PT Nippon Shokubai Indonesia (NSI) have signed a Memorandum Of Understanding (MoU) to jointly explore green chemistry business opportunities.

Through this MoU, Chandra Asri and NSCL and its affiliate, NSI (both Companies hereinafter referred to as “NIPPON SHOKUBAI Group”), will explore the potential to produce ‘bio’ materials such as bio-naphtha, bio-olefins, and various products that utilize renewable energy, to produce sustainable derivative products such as acrylic acid (AA), acrylic ester (AES), and superabsorbent polymer (SAP).

Studies will be conducted to test the feasibility of producing ‘bio’ feedstock as well as creating a new green supply chain at Chandra Asri and NSI’s existing plants in Cilegon, maximizing the Company’s asset footprint, core competencies and technologies. This initiative is part of the implementation of Chandra Asri’s Environmental, Social and Governance (ESG) Framework program launched in 2022.

It also aligns with Chandra Asri’s focus on maintaining its position, including being listed in the top 1 percentile amongst peers, as assessed by Sustainalytics, a global ESG rating agency. The ‘bio’ project is also planned to be certified by an independent certification body.

The cooperation is aligned with the NIPPON SHOKUBAI Group’s long-term vision of “Strategic Transformation Initiatives for the Environment”, “Techno Amenity for the future” and “Promoting the use of bio-based materials” in its roadmap to reduce Greenhouse Gas (GHG) emissions by 2050.

President Director of Chandra Asri, Erwin Ciputra, said, “We are excited to explore the potential collaboration between Chandra Asri and NIPPON SHOKUBAI Group in producing environmentally friendly raw materials for Indonesia’s rapidly growing chemical industry. Chandra Asri is focused on sustainably improving our processes, products and feedstock usage with a clear objective of ensuring energy savings, carbon optimization and realizing a green-based horizon.

This cooperation with NIPPON SHOKUBAI Group marks another step in the Company’s journey in that direction in meeting the domestic market’s need for more environmentally friendly ‘bio’-chemical derivative products, such as green plastic, which is believed to have lower emissions. We hope this effort will support Indonesia’s Long-Term Strategy for Low Carbon and Climate Resilience 2050 (Indonesia Vision 2050 LTS-LCCR).”

NSI President Director, Shinichiro Yoshimoto, stated, “We are pleased to embark on this challenging collaboration together with Chandra Asri. NIPPON SHOKUBAI Group has developed a global supply system for SAP. SAP is a key ingredient for disposable diapers, made from AA produced from propylene, supplied by Chandra Asri.


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