Lotte Chemical's $3.9 Billion Cilegon Facility Set to Start Production in March 2025

Investment Minister Rosan Roeslani has recently confirmed that the production start date for Lotte Chemical’s petrochemical project in Cilegon remains on schedule, according to the several media reports. Despite initial delays caused by overlapping land issues, the project is progressing towards completion. The facility, valued at approximately Rp 59.37 trillion (around $3.9 billion), is slated to begin operations in March 2025. Rosan’s predecessor, Bahlil Lahadalia, had previously mentioned that production at the plant was set to start within the same month.

Rosan expressed his appreciation for both Lotte Chemical Indonesia and the support from local governments, highlighting that construction is now about 98.7 percent complete. The minister anticipates that the plant will begin exporting its products by May 2025. The project, which faced several setbacks, resumed construction in April 2022 after resolving complex land issues.

The Lotte Chemical facility will produce various essential petrochemical products, including polypropylene, butadiene, benzene, toluene, and xylene (BTX). These products are crucial components in the manufacture of a wide range of goods, such as bottles, wheels, paint, medical equipment, and insect repellents. The plant is expected to have a significant impact on the local and national economy.

Rosan emphasized the economic benefits of the project, noting that it will create up to 14,000 jobs, with only 4 percent of these positions occupied by South Koreans. He stressed that the plant’s establishment will bring considerable advantages to Indonesia, particularly the Cilegon area, by enhancing local industrialization, technological development, and export potential.

The investment from Lotte Chemical underscores Indonesia’s growing role as a key player in the global petrochemical industry, and the successful completion of this project is anticipated to bolster the country’s economic standing in the sector. The new plant is expected to contribute significantly to the region’s economic growth, providing a boost to both employment and industrial capabilities.

PT LOTTE Chemical Indonesia (LCI) is developing a comprehensive chemical complex on a large 110-hectare site in Cilegon City, Banten. This extensive facility aims to enhance the company’s position in the rapidly expanding Southeast Asian market and achieve vertical integration with its existing Polyethylene plant operated by LOTTE Chemical Titan Nusantara.

The LINE Project (LOTTE Chemical New Ethylene Project) is a major chemical plant initiative where LOTTE Chemical and its subsidiary, LOTTE Chemical Titan, are investing a total of $3.9 billion, with completion anticipated by 2025. The facility is projected to generate 1 million tons of ethylene, 520,000 tons of propylene, 250,000 tons of polypropylene, along with other downstream products such as butadiene and BTX (benzene, toluene, and xylene). This project involves constructing the largest Naphtha Cracking Center (NCC) in Indonesia and aims to reduce the country’s trade deficit, which currently sees 50% of its demand met through imports. It will also support the growth of the local chemical industry and generate employment opportunities in Indonesia.

Additionally, LOTTE Chemical Indonesia is committed to growing alongside Indonesia by continuously engaging with local communities and minimizing carbon emissions.