JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita stated that the inauguration of the new Lotte Chemical Indonesia (LCI) factory in Cilegon, Banten, is proof that Indonesia is still the main goal of global investment.
The new facility, which was inaugurated by President Prabowo, marks the realization of Lotte Group's long-term investment commitment and is a strong proof of investor confidence in the industrial climate in Indonesia, especially in the basic chemical sector.
"The construction of this factory shows that Indonesia is still the main destination for global investment in the manufacturing sector, especially the basic chemical industry," Agus said in a written statement, Friday, November 7.
Agus explained that the existence of the new factory is expected to further strengthen the chemical industry sector, especially upstream petrochemicals which are the backbones of various downstream industries, such as pharmaceuticals, food and beverages, electronics and automotive.
According to Agus, Indonesia remains the main objective of investment because the performance of the manufacturing sector continues to show a positive trend in the midst of global challenges.
The Purchasing Manager's Index (PMI) of Indonesian manufacturing in October 2025 was recorded at 51.2 points and the Industrial Trust Index (IKI) reached 53.5 points with 22 sub-sectors experiencing expansion.
The growth of the non-oil and gas processing sector in the second quarter of 2025 also reached 5.6 percent, while the chemical, pharmaceutical and textile industry sector grew higher by 6.7 percent on an annual basis (yoy).
In addition, the manufacturing industry sector is still the main motor of the national economy with investment realization reaching IDR 366.6 trillion in the first semester of 2025 or around 38.9 percent of the total national investment.
Meanwhile, in terms of exports, the non-oil and gas processing sector contributed 79.9 percent of Indonesia's total exports until August 2025.
"The data confirms the vital role of the manufacturing industry, including the basic chemical sector, in maintaining national economic resilience," said Agus.
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Furthermore, Agus said, the national chemical needs in 2024 will reach more than 53 million tons per year, with 72 percent of them based on oil and gas and coal.
However, domestic production capacity has not been able to meet all these requests, so petrochemical imports are still close to 11 billion US dollars per year and an increase of about 10 percent every year.
"Therefore, the construction of the Lotte Chemical Indonesia New Ethylene (LINE) factory is a strategic step to reduce dependence on imports of basic chemicals," explained Agus.
With an investment value of almost IDR 60 trillion, the LINE project is one of the largest investments in Indonesia as well as presenting the second Nafta Cracker facility in the country after more than 30 years.
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