Prabowo Inaugurates Rp 62.4 Trillion Lotte Chemical Plant in Cilegon
Key Takeaways
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CILEGON, Investortrust.id — President Prabowo Subianto inaugurates Lotte Chemical Indonesia’s new petrochemical plant in Cilegon, Banten, on Thursday, Nov 6, 2025, marking the operation of one of the country’s most strategic downstream industrial projects.
The inauguration began with the national anthem and a joint prayer, followed by a short video presentation titled “Integrated Petrochemical Downstream Project,” depicting the long-term construction process since 2016.
In his remarks, President Prabowo expressed appreciation for the project, describing it as a symbol of mutual trust between Indonesia and international investors. “It is an honor to be a partner to anyone, especially when partners from abroad come to us and invest their hard-earned money over decades. They trust us. Here, they bring benefits to us, and we must protect that,” Prabowo said.
Minister of Energy and Mineral Resources Bahlil Lahadalia reported that the Lotte project represented an investment value of US$ 3.9 billion, or approximately Rp 62.4 trillion, making it one of the largest petrochemical investments in Southeast Asia. “With this plant, we will no longer rely heavily on imports as before. Seventy percent of the output will substitute imports, and thirty percent will be exported. Its total revenue per year will reach around US$ 2 billion,” Bahlil said.
The facility processes naphtha into upstream and downstream products used in a wide range of applications, from plastic bottles and cables to automobile bumpers. The plant is expected to stimulate downstream industries, improve the trade balance, and generate local economic benefits.
Attendees at the event included Acting Ambassador of the Republic of Korea to Indonesia Park Soo Deok, several cabinet ministers, National Police Chief General Listyo Sigit Prabowo, Banten Governor Andra Soni, Cilegon Mayor Robinsar, and Lotte Group Chairman Shin Dong Bin.
Industrial Impact: Strengthening the Agro-Manufacturing Chain
According to Muhammad Sirod, functionary of the Indonesian Chamber of Commerce and Industry (Kadin) and Secretary-General of the Indonesian Farmers Association (HKTI), the project represents a turning point for integrating upstream petrochemical production with national agricultural needs.
“The Lotte Chemical Indonesia plant in Cilegon produces more than 2.4 million tons of petrochemical products per year, including ethylene, propylene, polypropylene, butadiene, and BTX,” Sirod said. “These are essential raw materials for agricultural plastics, liquid fertilizers, and mechanization components that previously relied on imports.”
He noted that the plant’s capacity—1 million tons of ethylene and 520,000 tons of propylene annually—supports the domestic production of polyethylene and polypropylene, vital for irrigation systems, mulch films, and fertilizer packaging. “This local supply chain will lower logistics costs and boost efficiency for small and medium enterprises in the agro sector,” Sirod added.
He also highlighted the potential for creating new industrial clusters in Banten and West Java: “The petrochemical-agriculture value chain can form new regional clusters, linking plastic processing, agricultural packaging, and agrochemical formulation industries. This strengthens Indonesia’s downstream transformation policy from raw material exporter to value-added producer.”
Moreover, the project’s downstream effects are expected to enhance farm-level competitiveness. “Input costs for mulch, fertilizer containers, and irrigation systems could drop by up to 20% when raw materials are domestically sourced,” Sirod said. “That directly improves farmers’ productivity and strengthens Indonesia’s agricultural competitiveness in horticulture, food crops, and plantations.”