Cilegon — Indonesia has inaugurated Lotte Chemical Indonesia’s new integrated petrochemical complex in Banten, a $3.9 billion investment expected to save $1.4 billion annually in imports. President Prabowo Subianto presided over the ceremony, underscoring the project’s significance for both national and regional industrial resilience.
The facility, capable of processing 3,200 kilotons of naphtha feedstock per year, will produce key upstream materials such as ethylene, propylene, and hydrogen, alongside downstream products including HDPE, LLDPE, polypropylene, and BTX. Approximately 70% of output will serve Indonesia’s domestic market, while 30% will be exported, reinforcing ASEAN’s collective supply chain.
Energy Minister Bahlil Lahadalia emphasized that the plant’s downstream products are valued at $2 billion annually, serving industries from plastics and automotive to medical equipment and agriculture. “With this plant in operation, we no longer need to rely heavily on imported petrochemicals,” he stated, highlighting the broader impact on Indonesia’s trade balance.
From a regional perspective, the project reflects ASEAN’s growing emphasis on industrial integration beyond mineral and coal sectors. By strengthening petrochemical capacity, Indonesia contributes to a more balanced and self‑sufficient regional economy, reducing vulnerability to global supply disruptions.
The Cilegon complex also symbolizes the deepening partnership between Indonesia and South Korea, with Lotte Group’s investment serving as a model of cross‑border collaboration. For ASEAN, it demonstrates how strategic industrial projects can reinforce economic credibility, foster resilience, and enhance competitiveness in the global market.
