Lotte Chemical Launches Major Petrochemical Plant in Indonesia
Lotte Chemical Corp. has officially opened a $3.9 billion petrochemical plant in Cilegon, Indonesia, marking one of the largest South Korean investments in the country. The facility, inaugurated by Indonesian President Prabowo Subianto and Lotte Group Chairman Shin Dong-bin, will produce 1 million tons of ethylene, 520,000 tons of propylene, and 350,000 tons of polypropylene annually. The plant aims to strengthen Indonesia’s petrochemical industry and serve as a hub for expanding Lotte’s presence in Southeast Asia.
Lotte Chemical Corp., a subsidiary of South Korea’s Lotte Group, has commenced operations at its new, large-scale petrochemical complex in Cilegon, Banten, Indonesia. The project, representing an investment of approximately $3.9 billion, is among the largest by a South Korean company in Indonesia and underscores deepening economic ties between the two nations. The plant was officially inaugurated on November 6, 2025, in a ceremony attended by Indonesian President Prabowo Subianto, Lotte Group Chairman Shin Dong-bin, and other key officials. Construction began in 2022 on a 110-hectare site, with completion achieved in May 2025 and commercial operations starting after a three-month pilot run. The facility features a naphtha cracker with an annual capacity of 3 million tons, enabling production of 1 million tons of ethylene, 520,000 tons of propylene, and 350,000 tons of polypropylene each year, alongside other petrochemical products such as butadiene and BTX (benzene, toluene, xylene). Lotte Chemical highlights the plant’s role in supporting Indonesia’s 'Making Indonesia 4.0' initiative, which focuses on advancing major manufacturing sectors, including chemicals. The company plans to use Indonesia as a strategic base to target the high-growth Southeast Asian market, reducing the region’s reliance on imported petrochemicals and enhancing Indonesia’s industrial competitiveness. President Prabowo emphasized the importance of foreign investment, legal certainty, and a corruption-free environment to attract and retain such large-scale projects. The plant is expected to significantly contribute to local employment, technology transfer, and the development of Indonesia’s downstream petrochemical industry.
