Indonesian group eyes big boost from buying Shell's assets

Chandra Asri expects as much as $13.5b in annual revenue from refining site

- Ovais Subhani Senior Business Correspondent

Indonesia's Chandra Asri Group is confident that its deal with global oil giant Shell to buy its refining complex in Singapore will be an accretive move, citing operational synergies and a growing demand for fuels and petrochemicals in the region.

"We firmly believe that Southeast Asia is a high-growth region requiring an affordable supply of energy and chemicals," Mr Suryandi, human resources and corporate affairs director of the group, told The Straits Times.

The group expects revenue growth to increase by five times from 2024 to 2026, aided by the acquisition of Shell Energy and Chemicals Park (SECP) spread over Pulau Bukom and Jurong Island and other planned capacity expansions in Indonesia.

"Singapore is a pre-eminent refining and chemicals hub for manufacturing and trading. The strategic location of SECP will enable greater connectivity and access to other regional players in the market," said Mr Suryandi, who goes by one name, in an e-mail response to queries following the announcement of the sale agreement on May 8.

The sale of SECP to CAPGC, a joint venture of Chandra Asri and global commodities trader Glencore, is subject to regulatory approval.