Lotte Chemical Inaugurates $4 Billion Petrochemical Complex in Indonesia
South Korea’s Lotte Chemical has started commercial operations at its $4 billion petrochemical complex in Cilegon, Banten, Indonesia. The complex features the country’s first naphtha-based cracker, boosting Indonesia’s ethylene feedstock self-sufficiency from 44% to approximately 90% and reducing import dependence. The facility produces key olefins and derivatives, integrates downstream operations, and employs smart technology to enhance efficiency.
Lotte Chemical Corp., through its subsidiary PT Lotte Chemical Indonesia, officially began commercial operations in October 2025 at a new $4 billion petrochemical complex located in Cilegon, Banten Province, Indonesia. The complex, inaugurated on November 6, 2025, is Indonesia’s first naphtha-based cracker in 30 years, signaling a critical advance in the nation's olefins and derivatives sector. Spanning 110 hectares, the facility started construction in 2022 and achieved mechanical completion in May 2025. The plant is designed to produce one million metric tons of ethylene annually, significantly raising Indonesia’s ethylene self-sufficiency rate from 44% to about 90%, thereby drastically cutting import needs. The complex directly feeds Lotte Chemical Titan Nusantara’s existing polyethylene operations, eliminating the import of ethylene feedstock and reducing logistics costs. The plant incorporates flexible feedstock usage, allowing up to 50% LPG input for cost and efficiency benefits, alongside smart process technologies for digital integration and predictive maintenance. The project is expected to generate approximately $2 billion in petrochemical product sales annually, with 70% serving domestic markets and the remainder for export. Indonesian President Prabowo Subianto highlighted the project as a milestone for national industrial progress, supporting the broader goal of processing natural resources domestically to add value and create jobs. The facility’s startup contributes to national economic growth and enhances Lotte Chemical’s competitive position in Southeast Asia’s petrochemical industry.
