PT Chandra Asri Pacific Tbk : Chandra Asri Lifts Force Majeure Status, Strengthens Reliability of National Industrial Supply

About this update from Pt Chandra Asri Pacific Tbk

Press Release Chandra Asri Lifts Force Majeure Status, Strengthens Reliability of National Industrial Supply Jakarta, May 5, 2026 - PT Chandra Asri Pacific Tbk (Chandra Asri) has announced the end of the Force Majeure status previously imposed on polymer supply. With increasingly stable operating conditions, the Company continues to strengthen its production capacity and ensure supply continuity to meet domestic market demand. This decision was made after the Company successfully implemented various strategic measures to maintain production continuity amid global supply chain challenges. Chandra Asri proactively secured alternative sources of raw materials from multiple international markets, optimized its refinery facilities in Singapore, and expanded procurement to the United States to ensure that domestic customer needs continue to be met. These measures were undertaken despite logistical challenges and higher procurement costs. Shipments from the United States take approximately 50-70 days, longer than supplies from the Middle East, which typically range between 15-20 days. In addition, naphtha from the United States is priced around USD 150-200 per metric ton higher than supplies from the Middle East. These efforts were made as the Company prioritizes domestic needs amid the current global conditions. To enhance supply reliability going forward, ethylene production from the olefin cracker facility is now prioritized for the Company's internal polymer plant requirements. This policy supports the optimization of polypropylene (PP) and polyethylene (PE) production, which serve as key raw materials for various strategic sectors such as packaging, automotive, construction, logistics, healthcare, and consumer goods. Chandra Asri also reinforces supply continuity through support from monomer and ethylene supplies from its group facilities in Singapore. This synergy reflects the strength of the Company's integrated business model in maintaining supply chain resilience, improving operational flexibility, and responding to market needs quickly and efficiently. Director of Human Resources and Corporate Affairs of Chandra Asri Group, Suryandi, stated that the lifting of the Force Majeure status marks an important milestone in ensuring supply reliability for the national industrial sector. "As Indonesia's industrial Growth Partner, our priority is to ensure that domestic industries continue to receive the raw materials they need. Therefore, we are taking the necessary steps to maintain a reliable supply and support the growth of the national industry," said Suryandi. Chandra Asri expresses its appreciation to customers, business partners, the government, industry associations, and all stakeholders for their support and trust during this challenging period. The Company remains committed to fostering collaboration, maintaining open communication, and delivering the best service to support sustainable national industrial growth. *** About Chandra Asri Group Chandra Asri Group is a leading provider of energy, chemical, and infrastructure solutions in Southeast Asia, supplying products and services to a wide range of manufacturing industries in both domestic and international markets. Since its establishment in 1992, Chandra Asri Group has continued to grow and strengthen its reputation as a reliable growth partner, supported by strategic assets across Indonesia and Singapore.The Company's asset portfolio includes a refinery with a capacity of 237,000 barrels per day and an ethylene cracker unit with a capacity of 1.1 million metric tons on Bukom Island, 2.5 million metric tons of downstream chemical assets on Jurong Island, approximately 60 Esso retail fuel stations in Singapore, and Indonesia's first naphtha cracker in Cilegon with an ethylene production capacity of 0.9 million metric tons per year. The Company's business operations are supported by core infrastructure assets, including energy, water, port & storage, and logistics.For more information, please visit https://www.chandra-asri.com . .. For further inquiries, please contact: Chandra Asri Group Chrysanthi Tarigan Head of Corporate Communications Telp: 021-530 7950 Email: [email protected]

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