Jakarta (ANTARA) - Indonesian President Prabowo Subianto inaugurated the largest petrochemical factory in Southeast Asia, operated by South Korea’s Lotte Chemical Indonesia (LCI), in Cilegon City, Banten, on Thursday.
The president officially launched the modern plant by pressing a siren button alongside Energy and Mineral Resources Minister Bahlil Lahadalia and Minister of Investment and Downstreaming Rosan Roeslani, among others. He also signed an inscription marking the inauguration.
In his speech, Prabowo said the start of operations at the factory is a source of national pride, while reaffirming the government’s commitment to promoting foreign investment.
Built with an investment of around US$4 billion, the LCI petrochemical plant spans 107.8 hectares, or 1.08 million square meters, and is projected to produce a range of strategic products, including 1,000 kilotons of ethylene annually.
The facility is also designed to manufacture 520 kilotons of propylene, 350 kilotons of polypropylene, 140 kilotons of butadiene, and 400 kilotons of benzene/toluene/xylene each year, with tens of thousands of workers employed.
It is the fifth of its kind after similar Lotte plants in South Korea, Mexico, the United States, and Malaysia.
Also accompanying President Prabowo at the ceremony were Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of State Secretariat Prasetyo Hadi, Foreign Affairs Minister Sugiono, Cabinet Secretary Teddy Indra Wijaya, and Government Communication Agency Head Angga Raka.
On the sidelines of the 2025 APEC Summit in South Korea on October 31, Indonesia’s Investment Management Agency Danantara expressed interest in acquiring shares in LCI to benefit from the Cilegon petrochemical plant.
Investment Minister Roeslani, who also serves as Danantara’s CEO, said Lotte Chemical Corporation—LCI’s parent company—has offered a 35-percent stake. He noted that the agency prefers to pursue the investment directly rather than through a state-owned enterprise under its management.
He added that Danantara is currently assessing viable financing strategies for the proposed acquisition.
