Danantara Investment Management, the Indonesia Investment Authority and PT Chandra Asri Pacific Tbk completed a strategic investment in the Chlor Alkali–Ethylene Dichloride project on 15 October 2026. The total project cost is approximately US$800 million. Danantara and INA together committed US$200 million, equivalent to 25 per cent of the capital requirement. Chandra Asri Group remains the operating partner through its subsidiary PT Chandra Asri Alkali.
The facility, located in Cilegon, Banten, is designed to produce 400 kilo-tonnes per annum of caustic soda and 500 kilo-tonnes per annum of ethylene dichloride. Construction progress reached approximately 80 per cent by the end of September 2026. Commercial operations are scheduled for 2027. Official statements from both sovereign vehicles frame the investment as support for domestic chemical value chains and a reduction in import reliance for two intermediate products used across Indonesian industry.
The transaction continues a pattern of collaboration between the two institutions. Danantara, formally Badan Pengelola Investasi Daya Anagata Nusantara, was established under President Prabowo Subianto with a mandate to consolidate and optimise state assets, including holdings across roughly 1,000 companies. Public statements place the scale of assets under its oversight at approximately US$900 billion. The Indonesia Investment Authority, created earlier, now operates with a smaller balance sheet and a greater focus on private-sector and co-investment opportunities after the bulk of SOE-related assets moved to Danantara.
Danantara’s investment activity is executed through two specialised units: Danantara Investment Management for public and private market deployment, and Danantara Asset Management for other holdings. Recent executive commentary indicates that the public-markets book already holds approximately US$3 billion, with capacity to deploy a further US$1 billion before year-end subject to market conditions. Portfolio composition has been described as roughly 65 per cent equities, 30 per cent fixed income and 5 per cent hedge funds, with about one-quarter of the book allocated domestically. The fund has also signalled readiness to add Indonesian equity exposure during temporary market stress when valuations appear attractive, while maintaining a measured approach to artificial-intelligence themes.
Two distinct but overlapping channels for regional capital
Parallel operational work continues on the SOE portfolio itself. Danantara has indicated plans to consolidate 23 state-owned industrial-estate companies into a single entity, PT Kawasan Industri Indonesia, with a formal announcement targeted for 5 November. The combined land bank is cited at 35,000 hectares. Separate consolidation processes are under way for construction companies, insurance entities, hospitals and hotels, with an overall objective of reducing the managed portfolio to around 200 core businesses by the end of 2026. Dividends generated by the portfolio are to be reinvested rather than remitted to the state budget in 2026 or 2027, according to statements from both Danantara and the Ministry of Finance.