JAKARTA: PT Chandra Asri Pacific has declared force majeure after the US-Israel war with Iran disrupted the flow of feedstock shipments through the Strait of Hormuz, a critical global energy choke point.
“Due to the military conflict in the Strait of Hormuz area in the Middle East, which has affected the smooth distribution of raw materials within the supply chain, the company has issued a force majeure notification to its business partners in accordance with the applicable contractual provisions,” human resources and corporate affairs director Suryandi said in a statement on Tuesday.
Suryandi described the notification as a measured administrative step taken after a comprehensive internal assessment of potential risks to the company’s ability to fulfill obligations to customers.
He added that the move reflected a commitment to transparency vis-a-vis stakeholders amid heightened geopolitical uncertainty.
The petrochemical company said it would continue to closely monitor developments in the conflict, predominantly involving Iran, Israel and the United States.
“As mitigation, we will reduce the operational run rates at our plants. We are currently coordinating with customers to mitigate the impact of this situation,” he said.
Chandra Asri noted that the duration of the force majeure remained uncertain, given the fluid situation in the region. Plant operating rates may be reduced as part of operational adjustments to safeguard supply continuity and manage feedstock availability.
Chandra Asri Group is known to be Indonesia’s pioneer naphtha cracker operator, producing essential raw materials for a wide range of downstream industries, including olefins, polyolefins, styrene monomer and butadiene.
These products serve as key inputs for packaging, automotive components, consumer goods, construction materials and other manufacturing sectors. The company plays a critical role in supplying domestic industrial demand and is regarded as a vital national industrial asset.
The Strait of Hormuz is one of the world’s most important maritime corridors for oil and liquefied natural gas (LNG) shipments.
According to the US Energy Information Administration, roughly one-fifth of global oil and LNG trade passes through the narrow waterway, an average of 20.9 million barrels per day in the first half of 2025.
The ongoing hostilities in the region have reportedly limited tanker movements, contributing to volatility in global energy markets. The US-Israeli attack on Iran has pushed international crude oil prices above US$80 per barrel, raising concerns about inflationary pressure and fiscal strain for oil-importing countries.
Indonesia’s imports of mineral fuels from Iran in 2025 amounted to US$420,000 in January. — The Jakarta Post/ANN
