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TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto officially inaugurated the integrated petrochemical plant owned by PT Lotte Chemical Indonesia (LCI) in Cilegon, Banten, Indonesia.The massive project, which cost approximately US$3.9 billion (around Rp65 trillion), had been stalled for five years before officially commencing operations on Thursday, November 6, 2025.In his remarks, Prabowo emphasized that developing downstream industries, such as this petrochemical plant, is crucial for strengthening the national economy and boosting public welfare.He hailed the LCI facility as a strategic milestone in the oil and gas downstream program, asserting that it will drive Indonesia's self-sufficiency in providing essential chemical industrial raw materials."They have invested US$3.9 billion in our country. Thank you, I am proud. This brings enormous benefits to the interests of all the people of Indonesia," Prabowo stated, as quoted from the live broadcast on the Ministry of Energy and Mineral Resources' YouTube channel.Largest in Southeast AsiaThe petrochemical plant is owned by Lotte Group, one of the largest conglomerates from South Korea, which has broad interests spanning petrochemicals, retail, food and beverage, and logistics.Bahlil Lahadalia, the Head of the National Energy Security and Downstream Industry Development Task Force, explained that the project was initially conceived in 2016.However, construction only resumed in April 2022 after the government intervened to resolve land issues, streamline permits, and provide necessary investment incentives.Bahlil proudly described the facility as the largest petrochemical plant in Southeast Asia."It's worth around Rp63 to 64 trillion, and this is one of the largest petroleum investments in the region. Lotte has similar facilities in Malaysia, but the one in Indonesia is the biggest," he confirmed.Boosting Self-Sufficiency and Economic ValueThis LCI facility marks the first new naphtha cracker complex to be built in Indonesia in the last three decades. The plant will be a major producer of ethylene, propylene, polypropylene, and various other petrochemical derivatives.These chemicals are critical raw materials for the plastic, textile, automotive, electronics, and health sectors.Bahlil estimated that once fully operational, the plant will generate an economic value of about US$2 billion per year. This includes the potential for substituting imports worth approximately US$1.4 billion and generating additional exports valued at US$600 million.The Chair of the Golkar Party noted that the project is expected to employ up to 40,000 workers both directly and indirectly during its construction and operational phases.Most importantly, the plant is projected to reduce national dependency on imported petrochemical raw materials, which currently account for about 50% of domestic demand.Editor’s Choice: Indonesia's Coal Output Hits 584 Million Tons in 2025, Misses Annual TargetClick here to get the latest news updates from Tempo on Google News
