Airlangga Praises South Korea's Lotte Chemical for Completing Rp 62 Trillion Petrochemical Plant
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GYEONGJU, Investortrust.id — Coordinating Minister for Economic Affairs Airlangga Hartarto has commended Lotte Chemical Corporation for completing its new petrochemical complex in Cilegon, Banten, valued at around US$ 3.9 billion or Rp 62 trillion. The facility, known as the Lotte Chemical Indonesia New Ethylene Project, is scheduled to begin commercial operations in the fourth quarter of 2025.
Airlangga met with Lotte Chemical Chief Executive Officer Young Jun Lee on Wednesday, Oct 30, 2025, ahead of the Asia-Pacific Economic Cooperation (APEC) Summit in Gyeongju, South Korea. The meeting discussed the final stages of construction and reaffirmed the long-term partnership between the Indonesian government and Lotte Group in downstream chemical industries.
“The government appreciates Lotte Chemical’s commitment in completing this strategic project on schedule and to the highest safety standards. This facility symbolizes the strength of Indonesia–Korea economic cooperation and represents a major step in achieving national industrial self-reliance,” said Airlangga.
The minister emphasized that the new plant would have a tangible impact on the domestic economy by reducing import dependence, stabilizing derivative product prices, and supporting the government’s industrial substitution program. “The operation of this plant will lower production costs and strengthen the competitiveness of Indonesia’s manufacturing base,” he added.
Beyond serving domestic demand, the complex is also expected to export to international markets, positioning Indonesia as a key player in the Asia-Pacific petrochemical supply chain. The project will thus support Indonesia’s trade balance and enhance the global competitiveness of its chemical exports.
Airlangga underscored that Lotte Chemical’s investment serves as a catalyst for broader economic transformation, aligned with Indonesia’s downstream industrialization, green economy agenda, and efforts to increase value-added production from domestic resources.
The government, he said, will continue strengthening the industrial ecosystem through fiscal incentives, infrastructure development, and collaboration in research and workforce training.
“Lotte Chemical’s project is a clear example that Indonesia is no longer just a market but a strategic partner in the global value chain. We aim to attract more investments of similar scale and sophistication—those that drive employment, technology transfer, and industrial resilience,” he said.
During the meeting, Airlangga also highlighted the crucial role of Indonesia’s sovereign wealth fund, Danantara, in facilitating long-term strategic investments. The fund, he explained, plays a pivotal role in financing high-impact projects in priority sectors such as petrochemicals, renewable energy, and advanced infrastructure.
“Danantara functions as a strategic investment facilitator to ensure that large-scale projects like this continue sustainably and deliver broad economic benefits,” said Airlangga.
Through this role, Danantara is expected to strengthen Indonesia’s investment financing structure, enabling the nation to act not merely as an investment recipient but as an active partner in the global industrial landscape.