LOTTE Chemical completes major Indonesian petrochemical complex, boosting local self-sufficiency, strengthening Southeast Asian market presence, and enhancing future growth with advanced, efficient operations.
LOTTE Chemical has officially completed the construction of its large-scale petrochemical complex in Cilegon, Banten Province, Indonesia, marking a significant step forward in its strategic expansion into the Southeast Asian market. The company announced on the 7th that the completion ceremony for LOTTE Chemical Indonesia (LCI) took place on the 6th, drawing participation from leaders of both nations and key industry representatives.
The event saw the presence of LOTTE Group Chairman Shin Dong-bin, LOTTE Chemical CEO Lee Young-jun, Indonesian President Prabowo Subianto, Park Soo-deok, the Chargé d’Affaires of the Korean Embassy in Indonesia, along with around 300 guests from business and government sectors of both countries. The gathering highlighted the depth of cooperation between South Korea and Indonesia, particularly in the rapidly evolving petrochemical sector.
During the ceremony, Chairman Shin emphasized the importance of the project, describing it as one of the most substantial investments ever undertaken by a Korean enterprise in Indonesia. He noted that the LINE project—short for LOTTE CHEMICAL INDONESIA New Ethylene Complex—symbolizes a deepening partnership between the two nations. He also underscored the economic impact the complex is expected to generate, estimating that by producing essential petrochemical products such as ethylene and propylene, LCI will create economic value totaling roughly USD 2 billion annually. According to him, this will significantly support Indonesia’s ongoing industrial development and contribute to stronger national competitiveness.
President Prabowo Subianto expressed appreciation for the collaborative efforts that led to the successful realization of the project. He praised the dedication of LOTTE’s leadership and the support provided by Indonesian officials throughout the construction and development phases. President Prabowo added that he hopes LCI will serve as a model for future global investments, demonstrating Indonesia’s ability to support safe, reliable, and large-scale industrial operations.
The LINE project was conceptualized as part of LOTTE Chemical’s broader plan to expand its footprint across Southeast Asia, a region increasingly regarded as a growth engine for the global petrochemical industry. Built on a 110-hectare site, the complex represents a total investment of USD 3.95 billion. Construction commenced in 2022 and reached completion in May 2025, achieving commercial operation on schedule, which further strengthened trust and cooperation with the Indonesian government.
The new plant is designed to produce an extensive range of petrochemical products annually, including 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. These production capacities align with Indonesia’s “Making Indonesia 4.0” roadmap, which identifies petrochemicals as one of five priority sectors with an expected growth target of around 5% per year. Despite this focus, Indonesia’s domestic production remains insufficient, with ethylene self-sufficiency at just 44% last year. With LCI’s full-scale operations, the country’s ethylene self-sufficiency is projected to rise to nearly 90%, helping reduce import dependency, improve trade performance, and create new employment opportunities.
The Indonesian government has extended policy support, including tax incentives, to bolster LCI’s competitiveness. Additionally, since South Korea’s and Indonesia’s petrochemical markets function independently, LCI’s production is not expected to influence supply dynamics or export volumes in the Korean market.
The LCI facility incorporates advanced Korean engineering and cutting-edge technologies aimed at maximizing energy efficiency and lowering carbon emissions. Its design allows up to 50% LPG feedstock utilization alongside naphtha, providing operational flexibility and cost improvements. The site is also equipped with AIM (Asset Information Management) systems, enabling digital integration of operational data, 3D modeling, and enhanced predictive maintenance for improved productivity.
Adjacent to the new complex, LOTTE Chemical Titan Nusantara (LCTN), which manufactures 450,000 tons of polyethylene annually, is now vertically integrated with LCI. It will directly receive ethylene through on-site pipelines instead of relying on imports, reducing logistics expenses and boosting overall profitability.
Looking ahead, LOTTE Chemical intends to leverage Indonesia as a strategic base for strengthening its leadership in Southeast Asia while diversifying its global petrochemical portfolio. Additionally, the company plans to continue streamlining its domestic operations and expanding into high-value specialty materials, including advanced materials and fine chemicals.
