President Prabowo Subianto officially inaugurated the operation of PT Lotte Chemical Indonesia’s (LCI) petrochemical plant project in Cilegon, Banten, on Thursday, November 6. 

The project, valued at USD 3.9 billion or around IDR 65.1 trillion, is claimed to be the largest petrochemical plant in Southeast Asia. It is also the first naphtha cracker processing complex built in Indonesia in the past 30 years. 

Prabowo expressed deep appreciation for the inauguration, calling it a significant achievement for Indonesia. He urged all parties to ensure that the plant brings tangible benefits to the public and the national industry.  

“Today, I am proud, that is the main message I want to convey. They bring benefits to us, and we must protect and welcome them sincerely without any interference,” Prabowo said during his inauguration speech, as broadcast on the Presidential Secretariat’s YouTube channel on Thursday, November 6.  

The President called on the public and other stakeholders to welcome investment with an open heart and not disrupt operations. Through such cooperation, he said, Indonesia could accelerate its industrial and economic development. 

“A nation that is open and maintains good relations with all parties will quickly move toward prosperity,” Prabowo added.  

At full operational capacity, the plant is projected to produce downstream oil and gas products worth USD 2 billion annually. Of that amount, approximately USD 1.4 billion will serve as import substitution, while USD 600 million will contribute to increasing national exports. LCI will serve 70% of the domestic market and 30% for export. 

The plant will process 3.2 million tons of naphtha per year, with an LPG composition of 0–50%. The raw materials will be converted into various upstream and downstream products.  

The upstream products include 1 million tons of ethylene per year, 520,000 tons of propylene per year, 320,000 tons of mixed C4 per year, 675,000 tons of pyrolysis gasoline per year, 26,000 tons of pyrolysis fuel oil per year, and 45,000 tons of hydrogen per year. 

The plant will also produce 250,000 tons of high-density polyethylene per year, 200,000 tons of linear low-density polyethylene per year, 350,000 tons of polypropylene per year, 140,000 tons of butadiene per year, 180,000 tons of raffinate per year, and 400,000 tons of benzene, toluene, and xylene per year. 

These products will serve as raw materials for a wide range of everyday goods, including plastic bottles, cables, car bumpers, medical equipment, tires, and synthetic rubber. The derivative products will also be used in insecticide and paint manufacturing. 

Chairman of PT Lotte Chemical Indonesia, Shin Dong-Bin, said the project began with a groundbreaking ceremony in 2016. Shin stated that the plant’s establishment aims to make Indonesia a global petrochemical hub while strengthening ties between Indonesia and South Korea.  

“After nearly a decade of hard work, we are proud to see this vision finally realized,” Shin said during the event. 

President Prabowo was accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Energy and Mineral Resources Bahlil Lahadalia, and Minister of Investment and Downstream Industry Rosan Roeslani. 

This article is published in partnership with Katadata 

Original article here