PT. AKR Corporindo, Tbk

Hebang Group to invest USD 800 Million in SEZ JIIPE Term Sheet signed for Joint Venture with AKR Corporindo for Petrochemical Manufacturing Plant

August 31, 2023

Jakarta, 31st  August 2023 PT AKR Corporindo Tbk (IDX Stock Code: AKRA.IJ) today announced that Sichuan Hebang Biotechnology Co. (Hebang) leading Chinese listed company which integrates chemical, photovoltaic and mineral products has signed binding agreement (CSPA) with  PT Berkah Kawasan Manyar Sejahtera (BKMS) subsidiary of AKRA for purchase of land to set up Petrochemical manufacturing plant in SEZ- Java Integrated Industrial and Port Estate (JIIPE-SEZ);


Hebang in its announcement dated August 30,  2023, disclosed that plans to invest US Dollars 800 million in the project, to build a Petro chemical plant on the land  measuring  67 hectares in JIIPE-SEZ, mainly for the production of Sodium carbonate, Ammonium chloride and Glyphosate and other products.  At the same time, Hebang signed a Term Sheet with PT AKR Corporindo Tbk  (AKRA), to establish a joint venture company which will be the  investment, construction and operation entity for the project in Indonesia with proposed ownership of  90% of the shares by Hebang ( or any of its affiliates or subsidiaries), and AKRA (or any of its affiliates or subsidiaries) shall hold 10% of the shares in the Joint Venture Company.