JAKARTA – PT Chandra Asri Pacific Tbk (TPIA), the petrochemical industrial arm of tycoon Prajogo Pangestu, said its operations are continuing normally despite declaring force majeure earlier this week (2/3).

According to IDNFinancials.com, TPIA declared force majeure following disruptions to raw material supply after shipping routes through the Strait of Hormuz were affected by the conflict involving Iran and the United States–Israel alliance.

In a clarification submitted to the Indonesia Stock Exchange on Thursday (5/3), the company’s Director of Human Resources and Corporate Affairs, Suryandi, said the force majeure declaration is a common procedure in global business practice when facing the risk of external disruptions beyond a company’s control.

According to TPIA’s management, the move is a precautionary step that must be taken administratively as a form of transparency and risk mitigation to protect partners and customers from potential losses.

“The force majeure notification does not automatically reflect a halt in the Company’s operations, but rather forms part of risk mitigation against the impact of an evolving external situation,” he said.

He stressed that the company’s operations remain ongoing, although TPIA will continue to monitor and evaluate potential business risks stemming from global developments.

Management said the company is implementing “selective operational adjustments (run rates)” in line with supply availability and demand in order to maintain business continuity and ensure supply to customers.

In line with Jakarta Composite Index plunging 4.6% on Wednesday (4/3), TPIA shares also fell 8.15% to IDR 5,350, and remained flat until the end of the first trading session on Thursday (5/3). (ZH)