Danantara Advances Talks to Acquire 35 Percent Stake in Lotte Chemical’s Cilegon Plant

JAKARTA, investortrust.id — CEO BPI Danantara Rosan Perkasa Roeslani confirms on Thursday, Nov 27, 2025 in Jakarta that the sovereign investor is deepening negotiations with Lotte Chemical for the potential acquisition of up to 35 percent of the company’s newly inaugurated petrochemical complex in Cilegon, a deal valued at roughly US$1.7 billion in equity. The discussions come as Indonesia accelerates efforts to secure its downstream industrial base through large-scale petrochemical capacity.

Rosan says Danantara continued to evaluate the proposal from Lotte Chemical, noting that several ownership ranges remained under review. He says, “The negotiation is between 25 and 30 percent.” He adds that the exact investment value is still under assessment. “It is being calculated, we are negotiating now,” he says.

He stresses that the process required caution given the scale of the transaction. “This is a large value. We certainly must conduct due diligence first,” he says. The potential acquisition aligns with President Prabowo Subianto’s broader strategy of reducing import dependency and strengthening industrial self-sufficiency through integrated petrochemical manufacturing.

The Lotte Chemical Indonesia plant was inaugurated by President Prabowo on Thursday, Nov 6, 2025 in Cilegon, marking the start of operations for one of the largest petrochemical investments in Southeast Asia. Prabowo praises the project and underscores the importance of safeguarding investor confidence. He says, “Our honor is that we partner with anyone. Especially when partners from abroad come to us, investing the money they earned with effort for decades. They trust us. Here they provide benefits to us, and we must protect that.”

In his report, Energy and Mineral Resources Minister Bahlil Lahadalia says the project carried an investment value of US$3.9 billion or about Rp 62.4 trillion, placing it among the region’s largest petrochemical ventures. He says, “With this plant, we will no longer import in large volumes as in previous years. Seventy percent is import substitution, thirty percent we export. The total revenue per year is US$2 billion. Around US$1.4 to US$1.5 billion stays here, and the rest we export.”

At the facility, naphta is processed into upstream and downstream products used as key raw materials for plastics, cables, automotive components, and consumer goods. The plant’s operation is expected to bolster downstream manufacturing, improve Indonesia’s trade balance, and deliver multiplier effects for local communities.

The project’s significance was highlighted by broad representation at the inauguration, including acting South Korean Ambassador Park Soo Deok, Lotte Group Chairman Shin Dong Bin, cabinet ministers, National Police Chief General Listyo Sigit Prabowo, and local leaders. Their presence underscored the strategic weight of the plant within Indonesia’s industrial transformation agenda.

For Danantara, the acquisition would strengthen its positioning as a key investor in long-term industrial infrastructure with substantial spillover benefits. Analysts see the ongoing due diligence as one of the most consequential corporate developments under the Prabowo administration.