Indonesian President Prabowo Subianto inaugurated a $4 billion petrochemical production facility developed by South Korea’s Lotte Chemical. The plant, located in Cilegon, marks a major milestone for the nation’s industrial sector.
First New Naphtha Cracker in 30 Years
The facility is recognized as Indonesia’s first new naphtha cracker in three decades, according to the Ministry of Energy and Mineral Resources. Designed to produce one million metric tons of ethylene annually, the plant significantly strengthens domestic petrochemical capabilities.
Reducing Import Dependence
Importantly, the plant is expected to reduce Indonesia’s ethylene imports by more than 90%. This shift not only enhances self-sufficiency but also supports the country’s broader goal of boosting downstream industrial competitiveness.
Commitment to Foreign Investment
President Prabowo emphasized the government’s commitment to creating mutually beneficial partnerships and supporting foreign investment. He highlighted that strategic industrial investments play a crucial role in advancing Indonesia’s economic priorities.
Lotte Plans Further Expansion
Lotte Group Chairman Shin Dong-bin noted, “Lotte will continue to invest and expand its business to high-value-added petrochemical products to strengthen Indonesia’s industrial capacity,” he said. As reported by reuters.com, with ongoing expansion plans, the project signals continued collaboration between Indonesia and South Korea in driving industrial growth.
