Lotte Chemical Inaugurates Petrochemical Plant in Cilegon

The Indonesian government inaugurated the Lotte Chemical Indonesia (LCI) petrochemical plant in Cilegon, Banten. The facility has an annual capacity of 1 million tonnes of ethylene and 520 000 tonnes of propylene. It marks a major addition to the country’s downstream chemical sector.

Investment in the facility began in 2016 and the plant will process naphtha and LPG into basic and downstream chemicals such as plastics and synthetic fibers. Minister of Economic Affairs Airlangga Hartarto said the project reflects strong global investor confidence and will replace billions of dollars of imported chemical feedstock. The plant is also expected to raise the value‑added of the national industry.

When fully operational, the plant is expected to reduce Indonesia’s reliance on chemical imports, create new export opportunities, and support downstream sectors ranging from automotive to textiles. This could strengthen Indonesia’s trade‑balance surplus.