PT Chandra Asri Pacific, Indonesia's largest petrochemical maker, declared force majeure on March 2 after disruptions to feedstock shipments through the Strait of Hormuz following the outbreak of the Iran war. The Jakarta-based company notified customers that the duration of the force majeure remains uncertain as it monitors the evolving conflict between the United States and Iran.

Chandra Asri operates Indonesia's largest integrated petrochemical complex and produces olefins and polyolefins. The company also owns refining and downstream chemical assets in Singapore through a joint venture, including a refinery with capacity of 237,000 barrels per day and a 0.9 million metric tons-per-year naphtha cracker. The conflict has disrupted oil flows through the strategic waterway, where roughly one-fifth of the world's oil and liquefied natural gas passes through.

The company's shares fell 2.5% on Tuesday to their lowest level in almost one year. As part of precautionary measures, Chandra Asri said it would adjust operating levels at its plants to safeguard operational resilience across its business units.