By: ICN Bureau
Last updated : November 13, 2025 4:08 pm
Commercial production began last month and this is expected to dramatically raise the nation’s ethylene self-sufficiency rate from 44% to 90%
Lotte Chemical has announced the completion of its large-scale petrochemical complex in Cilegon, Banten, Indonesia, marking a major milestone in its expansion across Southeast Asia.
The completion ceremony for Lotte Chemical Indonesia (LCI) was held on November 6, attended by Lotte Group Chairman Shin Dong-bin, Lotte Chemical CEO Lee Young-joon, Indonesian President Prabowo Subianto, and Chargé d’Affaires of the Republic of Korea to Indonesia Park Soo-deok, along with approximately 300 distinguished guests from both countries.
Chairman Shin Dong-bin stated, “This project represents one of the largest investments by a Korean company in Indonesia and symbolizes the strong partnership between our two nations. It will serve as an important foundation for strengthening Indonesia’s petrochemical industry and national competitiveness.”
He added that the complex will produce key petrochemical products such as ethylene and propylene, creating approximately US$ 2 billion in added economic value and contributing significantly to Indonesia’s sustainable economic growth.
President Prabowo Subianto expressed his appreciation to Lotte Group and Indonesian government officials who successfully led the project, saying,
“I hope this completion will set a positive precedent, demonstrating that foreign companies investing in Indonesia can conduct their business safely, reliably, and successfully.”
The Lotte Chemical Indonesia New Ethylene (LINE) project, with a total investment of US$ 3.95 billion, began construction in 2022 on a 110-hectare site and reached completion in May 2025. It is one of the most significant industrial projects in the country, designed to produce 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX (benzene, toluene, xylene) annually.
Commercial production began last month and this is expected to dramatically raise the nation’s ethylene self-sufficiency rate from 44 per cent to 90 per cent, reduce import dependency, and improve the country’s trade balance.
LCI incorporates state-of-the-art facilities and advanced design technology to deliver high energy efficiency and significant carbon reduction. The plant is engineered to use up to 50 per cent LPG as feedstock in addition to naphtha, ensuring both cost savings and operational flexibility. Furthermore, the integration of an Asset Information Management (AIM) system enables real-time digital management of operational data and 3D facility modeling, improving preventive maintenance and productivity.
Adjacent to LCI, Lotte Chemical Titan Nusantara (LCTN), which produces 450,000 tons of polyethylene (PE) annually, now receives a direct ethylene supply from the new complex. This vertical integration replaces previous ethylene imports and is expected to significantly reduce logistics costs and enhance profitability.
With the completion of this world-class complex, Lotte Chemical aims to strengthen its position as a leading global petrochemical company and establish Indonesia as its strategic hub for Southeast Asia.