The House of Representatives Urges the Government to Prioritize Local Workforce in the Lotte Chemical Banten Project

JAKARTA - Deputy Chairman of Commission IX of the Indonesian House of Representatives (DPR RI), Yahya Zaini, urged the government to prioritize local workforce absorption in the Lotte Chemical Indonesia New Ethylene (LINE Project) development project in Cilegon, Banten.

Furthermore, as a National Strategic Project (PSN), the LINE Project is estimated to create around 40,000 direct and indirect jobs during the construction and operational phases, and serve as a significant catalyst for regional economic growth.

"We view this project not only as an industrial investment, but also as a significant opportunity to strengthen the quality of the national workforce. The welfare, safety, and competency development of the local workforce must be top priorities," Yahya told reporters on Friday, November 14.

Yahya also emphasized the importance of local workforce absorption in every stage of the project. He encouraged the central and regional governments to coordinate with the management of PT Lotte Chemical Indonesia (LCI) to ensure a dominant portion of Indonesian workers, both at the technical and managerial levels.

"We encourage this project to not only serve as a showcase for foreign investment, but also as a learning ground and competency development platform for the Indonesian workforce. Local employment must be the backbone of a National Strategic Project (PSN) like this," emphasized the legislator from the East Java VIII electoral district.

Yahya also highlighted the importance of implementing occupational safety and health (K3) standards across all project lines. Given the high-risk complexity of the petrochemical industry, Yahya emphasized that the implementation of international safety protocols must be the minimum standard.

"Safety protocols are not just a formality," Yahya said.

Yahya believes it is crucial to involve higher education institutions and polytechnics around Banten, such as the Krakatau Polytechnic, in collaborative workforce training schemes to support national technological independence.

He also encouraged the government and project management to ensure that all workers involved receive protection of basic labor rights, including living wages, social security, and a safe and healthy working environment.

"Coordination between the Ministry of Manpower, the Ministry of Industry, and the Banten regional government must be strengthened to maximize the project's social and economic impact," Yahya said.

"We will ensure that every worker who contributes to this major project is not only economically valued, but also legally and socially protected. Economic development must always be in line with human development," he concluded.

As is known, the government inaugurated PT Lotte Chemical Indonesia's petrochemical plant in Cilegon, Banten, on Thursday, November 6. The inauguration of the plant came after construction and investment had been stalled for at least six years. Following the inauguration, the petrochemical plant is targeted for commercial operation in October 2025.

The government stated that the project is part of the integrated petrochemical project in Cilegon, Banten, which is included in the National Strategic Project (PSN). The petrochemical project has an investment of 3.9 billion US dollars, which has since increased to 4 billion US dollars, which at current exchange rates is approximately 63-64 trillion rupiah. This value makes it one of the largest petrochemical investments in Southeast Asia.

For your information, the petrochemical plant in Cilegon was temporarily abandoned in 2016. Construction of the petrochemical plant, owned by PT LCI, began in early 2022 and is scheduled for completion in 2025.

PT Lotte Chemical's production will be a substitute. of a number of chemicals currently imported by Indonesia. Eventually, the substitution of imported chemical products could reach 70 percent, with the remaining 30 percent exported.

Meanwhile, in terms of employment, the giant petrochemical plant, a joint venture between Indonesia and South Korea, PT Lotte Chemical Indonesia (LCI), will employ up to 40,000 workers during its construction and operational period.

This employment is the sum of direct and indirect labor. During the construction phase, the total workforce currently stands at 17,000.