Indonesia’s largest integrated petrochemical company, Chandri Asri, has signed a letter of intent with Dutch terminals operator Vopak to set up a joint venture for industrial infrastructure in in Cilegon, Banten Province, Indonesia.
The joint venture will initially explore storage opportunities in supply networks, with the intention of helping to grow existing petrochemical value chains and setting up an expanded industrial cluster in Cilegon. Erwin Ciputra, CEO of Chandra Asri, says that the company’s main aim with Vopak is to expand its existing jetty and tank farm operations, including by building a new jetty and tank farm to serve third party customers, and to prepare for the construction for supporting infrastructure for Chandra Asri’s planned second petrochemical complex.
‘We are excited about partnering with Indonesia’s premier petrochemical producer Chandra Asri to explore this opportunity in industrial infrastructure services. We believe in the long-term growth potential of Indonesia and this potential collaboration will enable us to further invest in Indonesia in industrial terminals, which has been earmarked as one of our growth focus areas,’ says Michiel Gilsing, division president, Vopak Asia & Middle East.
The partners will now work towards finalising the letter of intent and setting up the joint venture, subject to final terms and conditions such as regulatory and shareholder approvals.