Indonesia and South Korea marked a significant industrial milestone with the inauguration of a new USD 3.95 billion (IDR 61.6 trillion) petrochemical complex in Cilegon, Banten Province. The facility, developed by Lotte Chemical Indonesia (LCI) and officially opened in early November 2025, brings one of the largest foreign direct investments in Indonesia’s chemical sector to full commercial operation. Indonesian President Prabowo Subianto and senior executives from the Lotte Group attended the launch event, underscoring the strong economic ties between the two countries.
The new LINE (Lotte Chemical Indonesia New Ethylene) Project sits on a 110-hectare site and was completed on schedule following construction that began in 2022. It is designed to produce a wide range of essential petrochemical products, including 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 (benzene, toluene, xylene) annually. These products are critical feedstocks for plastics, synthetic rubber, solvents, and polyester industries both domestically and regionally.
The facility is expected to significantly raise Indonesia’s petrochemical self-sufficiency, with ethylene supply projected to meet up to 90% of national demand, a substantial increase from about 44% prior to the project. This shift will reduce reliance on imports, improve the trade balance, and support broader industrial growth under Indonesia’s “Making Indonesia 4.0” roadmap, which prioritizes petrochemicals as a key growth sector. The adjacent Lotte Chemical Titan Nusantara polyethylene plant will now receive ethylene directly from the new complex, cutting logistics costs and boosting operational efficiency.
Officials highlighted the project’s expected economic impact, estimating about USD 2 billion (IDR 31.4 trillion) in annual value from petrochemical output and enhanced downstream activity. The plant incorporates advanced technology for energy efficiency and carbon reduction, and its ability to process up to 50% LPG feedstock alongside naphtha gives it flexibility and cost advantages. Lotte Chemical plans to leverage Indonesia as a strategic hub to expand its presence in Southeast Asia and diversify into higher-value specialty materials in the coming years.
(Sources: Chem Eng Online; AlchemPRO, ChemXplore)
