Indonesia Opens $4 Billion Lotte Chemical Petrochemical Plant
Indonesian President Prabowo Subianto inaugurated a $4 billion petrochemical plant by South Korea's Lotte Chemical in Cilegon, which started commercial operations in October. The facility, the first new naphtha cracker in Indonesia in 30 years, will produce 1 million metric tons of ethylene annually, significantly reducing the country's ethylene imports. Lotte plans further investments to boost Indonesia's industrial capacity.
Indonesian President Prabowo Subianto officially inaugurated a major $4 billion petrochemical plant operated by South Korea's Lotte Chemical in Cilegon, Banten Province. The plant, which began commercial operations in October 2025, represents Indonesia's first new naphtha cracker in three decades and is set to produce 1 million metric tons of ethylene each year[1][2]. This production capacity is expected to cut Indonesia's ethylene imports by over 90%, marking a significant step toward greater self-sufficiency in petrochemical feedstocks. During the inauguration, President Subianto highlighted the government's commitment to attracting foreign investment for mutual economic benefits. Lotte Group chairman Shin Dong-bin announced plans for continued investment in high-value petrochemical products to strengthen Indonesia's industrial base. The project, developed by PT Lotte Chemical Indonesia, is part of a larger regional strategy to integrate supply chains across Southeast Asia, linking operations in Indonesia, Malaysia, and South Korea to enhance efficiency and competitiveness. The facility is also designed to produce additional key products such as propylene, polypropylene, butadiene, and benzene/toluene/xylene, supporting industries like packaging, automotive, and construction[3]. The plant spans approximately 108 hectares and is considered the largest petrochemical facility in Southeast Asia, employing tens of thousands of workers and positioning Indonesia as a key player in the regional petrochemical industry.
