Lotte Chemical Opens Massive Petrochemical Facility in Indonesia
Lotte Chemical has inaugurated a major new petrochemical complex in Cilegon, Indonesia, marking one of the largest Korean investments in the country. The $3.95 billion LINE facility produces 1 million tons of ethylene annually along with other petrochemicals, aiming to strengthen Indonesia's industry and reduce import dependency while supporting Southeast Asian market growth.
On November 6, 2025, Lotte Chemical held a completion ceremony for its new petrochemical complex named LINE (Lotte Chemical Indonesia New Ethylene) in Cilegon, West Java, Indonesia. The $3.95 billion project, spread over 110 hectares, produces 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX annually. This facility is regarded as one of the largest investments by a Korean company in Indonesia and aims to boost Indonesia’s petrochemical capacity and competitiveness while reducing its dependence on imports, which currently stands at just 44% self-sufficiency for ethylene. Construction began in 2022 and commercial operations started in October 2025. The plant integrates advanced technology allowing flexibility in raw material input (naphtha and LPG), leading to cost efficiencies and enhanced supply chain integration with other Lotte operations in Southeast Asia. Indonesian President Prabowo Subianto emphasized the importance of supporting foreign investment to drive national development and pledged to protect such investments while encouraging further economic cooperation between Korea and Indonesia. The facility is expected to generate about $2.06 billion in annual revenue and position Lotte Chemical as a strategic petrochemical player in the Southeast Asian market.
