B1 and MTBE Plants Expansion Project Contract Signing by Chandra Asri Group and IKPT


On December 9, 2024, in Jakarta, PT Inti Karya Persada Tehnik (IKPT) has officially signed the Engineering, Procurement and Construction (EPC) of Butene-1 (B1) and Methyl Tert-butyl Ether (MTBE) Plants Expansion Project, owned by PT Chandra Asri Pacific Tbk (Chandra Asri Group). Chandra Asri Group, a prominent provider of energy, chemical, and infrastructure solutions in Southeast Asia plans to increase its existing B1 and MTBE Plants production capacities by more than 25%, further solidifying Chandra Asri Group’s position as the sole producer of B1 and MTBE in Indonesia.
The B1 and MTBE Plants are located within the Chandra Asri Group’s integrated petrochemical complex at the Ciwandan Plant. Both facilities commenced operations in 2020 and play a strategic role in supporting Indonesia’s petrochemical industry. The B1 Plant produces a vital raw material used as a comonomer in the production of Polyethylene plastic resin. Meanwhile, the MTBE Plant manufactures an octane booster for gasoline. The B1 Plant contributes to the domestic processing of petrochemical raw materials, meeting local industry demand, while the MTBE Plant supplies the domestic octane booster market, reducing reliance on imports, and serves export markets.
The existing B1 and MTBE Plants were constructed by IKPT in 2018 and began its operation in 2020. Thus, this expansion project marks Chandra Asri Group and IKPT continuous partnership. Pholavit Thiebpattama, Operation Vice President Director of Chandra Asri Group, in his opening words stated that the contract signing is a strategic step to strengthen Chandra Asri Group position as a key player in the domestic petrochemical industry, not only through organic growth, but also contribute to the country’s economic growth. He also expected IKPT, with its extensive experience in managing EPC projects, to ensure the successful execution of this expansion project, which is targeted to complete within 12 months and adhering to the highest quality and safety standards.
Atsushi Yoshihara, President Director of IKPT, highly appreciate Chandra Asri Group for trusting IKPT as the EPC contractor of the B1 and MTBE Plants Expansion Project. IKPT understand the mission that this B1 and MTBE Plants Expansion Project is one of Chandra Asri Group’s strategic projects to promote Chandra Asri Group strong commitments to Indonesian Government to strengthen the downstream domestic industry. IKPT commits to do our best effort to achieve the success of the project by completing the project according to the target schedule and adhering to the quality and safety requirements.