Just Inaugurated By Prabowo, Bahlil Claims Lotte Petrochemical Factory Facility In Cilegon Becomes The Largest In Southeast Asia

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that the New Ethylene Project factory owned by PT Lotte Chemical Indonesia (LCI) which was just inaugurated by President Prabowo Subianto in Cilegon is the largest in Southeast Asia.

Just so you know, this facility will produce ethylene, propylene, along with its various derivative products, raw materials are important for many domestic industries.

"In the current exchange rate, it has reached around Rp. 63-64 trillion, making it one of the largest petroleum investments in Southeast Asia. So this project is the largest in Southeast Asia, they also have Lotte in Malaysia, but here the biggest one," said Bahlil, Thursday, November 6.

In terms of employment, continued Bahlil, this project has a significant impact. During the construction and operational stages, it is estimated that it absorbs around 40,000 workers, both direct and indirect.

The presence of the factory is expected to reduce dependence on the import of petrochemical products, which so far have reached around 50 percent, while strengthening the availability of raw materials for the domestic downstream industry.

The project, which was initiated in 2016, cost an investment of around US$3.9 billion or around Rp.62.4 trillion.

This project marks the re-arrival of the construction of the Naphtha Cracker complex in Indonesia after about 30 years.

Hingga akhirnya pada April 2022 proses pembangunan pabrik berhasil dimulai dan bisa beroperasi sejak Oktober 2025.

Ketika berproduksi penuh, fasilitas ini diperkirakan menghasilkan 15 produk petrokimia hilirisasi migas senilai sekitar 2 miliar dolar AS per tahun, terdiri atas 1,4 miliar dolar AS substitusi impor dan 600 juta dolar AS tambahan ekspor, sehingga turut memperkuat neraca perdagangan sektor industri kimia nasional.

Until finally in April 2022, the factory construction process has been successfully started and can operate since October 2025.

When fully produced, this facility is estimated to produce 15 oil and gas downstream petrochemical products worth around US$2 billion per year, consisting of US$1.4 billion in import substitution and US$600 million in additional exports, thereby strengthening the trade balance of the national chemical industry sector.