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Lotte Chemical opens massive petrochemical facility in Indonesia

Published: 07 Nov. 2025, 16:45 Updated: 09 Nov. 2025, 18:37

Lotte Chairman Shin Dong-bin, second from left, and Indonesian President Prabowo Subianto, center, celebrate the completion of Lotte Chemical’s new petrochemical complex in Cilegon, Indonesia, on Nov. 6. [LOTTE CHEMICAL]

Lotte Chemical has begun operations at a massive new petrochemical complex in Indonesia.

The company held a completion ceremony Thursday at its new facility in Cilegon, West Java, Lotte Chemical said Friday. The plant is officially named LINE, short for Lotte Chemical Indonesia New Ethylene.

Some 300 guests attended the ceremony, including Lotte Chairman Shin Dong-bin, Indonesian President Prabowo Subianto, Lotte Chemical CEO Lee Young-jun and Park Soo-deok, chargé d’affaires at the Korean Embassy in Indonesia.

“This project marks one of the largest investments by a Korean company in Indonesia,” Shin said in a congratulatory address. “It is both a symbol of the strong bilateral partnership and a crucial foundation for enhancing Indonesia’s petrochemical industry and national competitiveness.”

President Prabowo responded by expressing hopes that “Lotte will serve as a model case for investment in Indonesia.”

Construction of the plant began in 2022 with a total investment of $3.95 billion. Built over a 110-hectare (271.8-acre) site, the facility is capable of producing 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 (benzene, toluene and xylene) per year. Annual revenue from the complex is expected to reach $2.06 billion.

The company also expects vertical integration with its nearby Lotte Chemical Titan Nusantara (LCTN) facility, which produces 450,000 tons of polyethylene annually.

The Indonesian government views the project as mutually beneficial, with 70 percent of the products from the LINE facility to be supplied to the local market. Indonesia currently produces only 44 percent of its ethylene domestically, but that rate could rise to 90 percent with the new facility in operation.

Shin has long focused on investment in Indonesia, especially since the two countries signed a Comprehensive Economic Partnership Agreement in 2019. In April, he led a private business delegation to Indonesia that included executives from Samsung, SK, Hyundai Motor, Posco and Hanwha.

Lotte Chemical derived 68 percent of its sales from overseas last year, with the Asia-Pacific region accounting for the largest share, 25 percent. The company plans to further expand its production base in Southeast Asia, including Malaysia and Vietnam, as part of its strategy to establish a regional petrochemical hub.

Meanwhile, back in Korea, the company is undergoing restructuring. It plans to submit a proposal to the government by year-end to integrate its naphtha cracking center in Daesan, South Chungcheong, with HD Hyundai Chemical.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KI-HWAN [[email protected]]