The Lotte Chemical Project In Cilegon Is Targeted To Be Completed By 2025

Photo: Doc. Antara

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia ensured that he was ready to oversee the investment project of PT Lotte Chemical Indonesia (LCI) in Cilegon, Banten, until it was completed in 2025 as an investment to support import substitution.

When directly reviewing the development of the LCI project in Cilegon, Banten, Sunday, March 12, Bahlil will form a team involving the task force from the Attorney General and the Deputy Chief of Police to resolve several issues experienced by LCI, such as compensation for community social support, issuance of building approval (PBG) and security protection.

"The development of LCI investment is in line with the mandate of Mr. President Joko Widodo to reduce our dependence on petrochemical imported products to encourage the pace of the Indonesian economy. When the LCI plant operates later, we hope that its production results will play a significant role as an import substitution that will save the country's foreign exchange," he said, quoted by Antara.

Bahlil also hopes that the investment will also directly provide a multiplier effect or positive double impact on various other related industries, including the regional economy and employment in the Banten Province, especially the City of Cilegon.

This investment is approximately worth IDR 60 trillion. Job creation towards the end of 2023 will reach 15,000, of which 95 percent are local Indonesian workers. The products produced are petrochemical products, 50 percent will be used for domestic needs and the rest will be exported, "he said.

In a joint review of the Acting Governor of Banten Province Al Muktabar, the Mayor of Cilegon Helldy Agustian, and the Director of Certain Crimes (Dirtipidter) of the National Police Criminal Investigation Agency Brigadier General Pipit Rismanto, Bahlil also asked the National Police's Criminal Investigation Agency to create a special team to oversee Lotte's investment project.

As Chair of the Investment Acceleration Task Force, Bahlil emphasized that the Task Force must oversee security both legally and in real disturbances from around.

He also reminded that in this investment, companies must prioritize collaboration with regional entrepreneurs who meet the requirements and workforce to be trained in order to benefit from this investment.

On the same occasion, LCI President Director Yim Dong Hee said the construction of the LCI integrated petrochemical factory construction had been started since early 2022, where until now construction achievements are still running according to the planned stages.

"The progress and achievements of the LCI project so far cannot be separated from the attention and support from the central and regional governments as well as other government institutions in the Cilegon City area. We hope this project can be completed according to the target by the end of 2025," said Yim.

As of January 2023, the realization of PT Lotte Chemical Indonesia reached 1.58 billion US dollars and until 2045 it is estimated that it will reach 4 billion US dollars.

As of February 2023, the development of Engineering, Procurement and Construction (EPC) has reached 38 percent and has absorbed 8,000 workers which will continue to increase, estimated at 15,000 workers by the end of 2023.