Indonesian petrochemical maker PT Chandra Asri Petrochemical Tbk and Dutch multinational tank storage company Royal Vopak have signed a Letter of Intent (LOI) to form a joint venture focusing on the industrial infrastructure business in Cilegon in the Indonesian province of Banten. Both companies will explore storage opportunities in supply networks that will support an expanded industrial cluster in the region. The LOI finalization and the forming of a JV will be subject to shareholder approvals as well as customary and regulatory terms and conditions.
Chandra Asri CEO Erwin Ciputra said the partnership would have two key strategic objectives, namely developing storage business to serve third-party clients and preparing supporting infrastructure for the company’s second petrochemical complex. Vopak’s Asia & Middle East Division President Michiel Gilsing said the collaboration would enable the company to further invest in Indonesia’s Industrial Terminals as one of its growth focus areas.
