Plant Engineering Lotte Chemical Develops Petrochemical Complex in Indonesia

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With an aim to accelerate expansion into the Southeast Asian market, Lotte Chemical has developed a new petrochemical complex in Indonesia. A completion ceremony for the project was also recently held in the country.

Seoul/South Korea – Lotte Chemical recently announced a completion ceremony for Lotte Chemical Indonesia (LCI) in Cilegon, Banten Province, Indonesia. The ceremony was attended by Lotte Group Chairman Shin Dong-bin, Lotte Chemical CEO Lee Young-jun, Indonesian President Prabowo Subianto, Park Soo-deok, Chargé d’Affaires of the Korean Embassy in Indonesia, and about 300 guests and officials from both countries.

In his congratulatory speech, Chairman Shin said: “This project represents one of the largest investments ever made by a Korean company in Indonesia, symbolizing the strong partnership between our two nations. It will serve as a vital foundation for strengthening Indonesia’s petrochemical industry and national competitiveness. By producing major petrochemical products such as ethylene and propylene, the complex is to generate approximately 2 billion dollars in economic value annually and contribute to Indonesia’s sustainable economic growth.”

President Prabowo Subianto stated: “I extend my respect and gratitude to all Lotte Group executives and Indonesian government officials who contributed to the successful completion of the LCI project. I hope this ceremony sets a positive example for other global investors to operate safely and reliably in Indonesia.”

Lotte Chemical planned the large-scale complex to strengthen its market presence in Southeast Asia, an emerging hub for the global petrochemical industry. The project, named Line (short for Lotte Chemical Indonesia New Ethylene Complex), required a total investment of 3.95 billion dollars and was constructed on a 110-hectare (approx. 330,000-pyeong) site. Construction began in 2022 and was completed in May 2025, achieving commercial operation as scheduled and reinforcing trust with the Indonesian government. The facility is to produce 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX annually.

Petrochemicals are one of five key priority industries under Indonesia’s “Making Indonesia 4.0” roadmap, which targets an annual growth rate of around 5 %. However, Indonesia’s domestic supply remains limited, with ethylene self-sufficiency at only 44 % last year. With LCI’s commercial production now underway, most output will be supplied to the domestic market, potentially increasing Indonesia’s ethylene self-sufficiency rate to 90 %. The project is expected to reduce import dependency, improve the trade balance, and create new jobs. The Indonesian government has supported LCI’s competitiveness through tax benefits and other policy measures. Meanwhile, since the Korean and Indonesian petrochemical markets are independent of each other, LCI’s output is expected to have minimal impact on Korean market supply or exports.

The LCI plant was built using advanced Korean engineering and design expertise to achieve high energy efficiency and carbon reduction. The facility can process up to 50 % LPG feedstock in addition to naphtha, allowing for cost and operational optimization. The site also incorporates Aim (Asset Information Management) solutions—key to smart plant operations—digitally integrating all operational and equipment data, including 3D modeling, to enhance preventive maintenance and productivity.

Located nearby, Lotte Chemical Titan Nusantara (LCTN), which produces 450,000 tons of polyethylene (PE), has now vertically integrated with the new complex by sourcing ethylene directly via on-site pipelines rather than imports, reducing logistics costs and improving profitability.

Lotte Chemical plans to use Indonesia as a strategic hub to strengthen its market leadership in Southeast Asia and diversify its global petrochemical portfolio. At the same time, the company will continue to rationalize its domestic petrochemical business and expand its presence in high-value specialty materials, including advanced materials and fine chemicals.

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