Investment Minister Rosan Calls Petrochemical Project Worth IDR 59.37 Trillion Ready To Operate In RI March 2-25

Minister of Investment, Rosan Roeslani. (Photo: Doc. Antara)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani said the petrochemical project worth IDR 59.37 trillion belonging to PT Lotte Chemical Indonesia (PT LCI) was ready to operate in March 2025.

Rosan said that the construction of this petrochemical factory was almost complete or approximately 98.7 percent.

"It is hoped that in March production will begin and in May exports will begin," said Rosan in a statement in Jakarta, quoted from Antara, Thursday, September 12.

PT LCI is one of the investment projects that was successfully facilitated by the government after the establishment of the Investment Acceleration Task Force (Satgas) by President Joko Widodo through Presidential Decree Number 11 of 2021.

After facing various licensing and land overlap constraints for 6 years, the project managed to restart construction in April 2022.

This project includes the construction of petrochemical facilities to produce polypropylene and other downstream products such as blindene, and BTX (benzene, toluene, xylene).

These products will be important raw materials for various industries such as the manufacture of bottles, tires, paints, medical equipment, and insect expulsion.

Rosan said the petrochemical industry is very important for downstreaming in Indonesia. Because at the same time, the company also absorbs 14,000 workers.

"Only 4 percent of the workforce from Korea, in terms of employment, technology, industrialization, and exports, has a positive impact on Indonesia, especially in the Cilegon area," he said.

Rosan also emphasized that the government has a super tax deduction incentive policy of up to 200 percent for companies that contribute to the development of vocational education.

This is a manifestation of the efforts of the Government of Indonesia to ensure that not only companies grow and develop, but also human resources in Indonesia.

On the same occasion, President Director of PT LCI Yim Dong Hee, also appreciated the presence of the Minister of Investment/Head of BKPM who conducted a review of the LCI production facility. This is a form of government attention to every investment development that occurs.

"Next year, we are ready to produce, we hope to invite the government back here," said Yim Dong Hee.

Based on data from the Ministry of Investment/BKPM, PT Lotte Chemical Indonesia's investment is listed as a foreign investment (PMA) from Malaysia, because the majority of shareholders (51 percent) are Lotte Chemical Titan Holding Bhd, which is based in Malaysia.

Over the past 10 years, Malaysia has ranked fifth as the country from Foreign Direct Investment (FDI), with a total investment of 21.86 billion US dollars.

South Korea, as the country of origin for minority shareholders in PT LCI, ranks seventh with a total investment of 18.20 billion US dollars.

The presence of these two countries in the strategic petrochemical project shows the confidence of foreign investors in the potential for economic growth and the Indonesian investment climate.