Indonesia Launches Southeast Asia's Largest Petrochemical Plant by Lotte Chemical
Indonesia inaugurated Southeast Asia's largest petrochemical plant in Cilegon, operated by South Korea's Lotte Chemical Indonesia, with a $4 billion investment. The plant spans nearly 108 hectares and is expected to produce large volumes of ethylene, propylene, polypropylene, butadiene, and aromatics annually. It will create tens of thousands of jobs and strengthen Indonesia's downstream chemical industry.
On November 6, 2025, Indonesia officially launched the largest petrochemical facility in Southeast Asia, operated by the South Korean firm Lotte Chemical Indonesia (LCI) in Cilegon, Banten. The plant represents an investment of around 4 billion USD and covers approximately 108 hectares. It is designed to produce 1 million tons of ethylene annually, alongside substantial quantities of propylene (520 kilotons), polypropylene (350 kilotons), butadiene (140 kilotons), and benzene, toluene, and xylene (400 kilotons each). The facility is expected to employ tens of thousands of workers and serve as a key upstream supplier for domestic and regional downstream industries, reducing Indonesia's import dependency in petrochemicals. This plant is Lotte Chemical's fifth worldwide and aims to strengthen Indonesia's chemical sector and promote foreign investment. The Indonesian Investment Management Agency Danantara is considering acquiring a 35% stake in the plant, potentially directly rather than through a state-owned enterprise. The inauguration ceremony was attended by President Prabowo Subianto and top government ministers, who emphasized national pride and the government's commitment to boosting foreign investment and industrial capacity. The plant complements Indonesia's growing petrochemical infrastructure and supports the country's economic and technological development goals.
