SEOUL, November 07 (AJP) - South Korea's Lotte Chemical said on Friday that it has completed construction of a massive petrochemical complex in Cilegon, a port city in Indonesia’s Banten Province.
A completion ceremony was held Thursday, attended by Lotte Group Chairman Shin Dong-bin, Lotte Chemical Chief Executive Lee Young-joon and Indonesian President Prabowo Subianto.
The facility — called the Lotte Chemical Indonesia New Ethylene Complex, or LINE — represents a $3.95 billion investment aimed at strengthening the company’s foothold in Southeast Asia’s rapidly expanding petrochemical market. Built on 110 hectares of land, the complex began construction in 2022 and was finished in May.
Now in commercial operation, the plant is designed to produce 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, the company said.
Indonesia has identified petrochemicals as a strategic sector under its “Making Indonesia 4.0” roadmap for industrial development. The industry has grown by about 5 percent annually, but domestic production has lagged demand, forcing the country to import large volumes of key materials. Indonesia’s self-sufficiency rate for ethylene stood at 44 percent last year.
Lotte’s new complex is expected to raise that figure to around 90 percent by supplying most of its output to local manufacturers. The project will also bolster Indonesia’s trade balance, create new jobs, and spur investment in related industries. The Indonesian government has granted Lotte tax incentives to support the venture’s competitiveness.
The LINE complex will also supply ethylene to the nearby Lotte Chemical Titan Nusantara plant, achieving vertical integration of production and improving overall efficiency.
Lotte Chemical said it plans to use Indonesia as a strategic base for expansion across Southeast Asia while continuing to streamline its domestic petrochemical operations and invest in specialty materials.
“This project is one of the largest investments ever made by a Korean company in Indonesia,” Chairman Shin said at the ceremony. “It will serve as a foundation for advancing Indonesia’s petrochemical industry and national competitiveness, generating about $2 billion in economic value and contributing to sustainable growth.”
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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