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Lotte Chemical's $3.9 billion Cilegon plant to begin production in March

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Jakarta Globe - September 12, 2024

Alfida Rizky Febrianna, Jakarta – Investment Minister Rosan Roeslani recently revealed that the production date of the petrochemical project belonging to South Korean giant Lotte Chemical still remained on schedule.

Lotte Chemical is currently building a petrochemical plant in Cilegon. The project was delayed due to overlapping land issues and is nearing completion. The plant –worth around Rp 59.37 trillion (almost $3.9 billion) – is set to begin next March. Rosan's predecessor Bahlil Lahadalia earlier this year had said that Lotte Chemical's plant would also start producing the same month.

"I would like to thank Lotte Chemical Indonesia as well as the sub-national government's support as the petrochemical plant is almost done. Its [construction] progress now stands at around 98.7 percent," Rosan recently said.

According to Rosan, the plant will likely start exporting its products in May.

The project could finally resume construction in April 2022 after undergoing a series of overlapping land problems. The Lotte Chemical project includes a petrochemical facility to produce polypropylene, butadiene, benzene, toluene, and xylene (BTX). These products are mainstay ingredients in the manufacturing of goods necessary for the production of bottles, wheels, paint, medical equipment, and bug repellents.

"The [Lotte Chemical] plant is set to absorb as many as 14,000 workers, and only 4 percent of the workers will be South Koreans. This plant – be it from a workforce, technology, industrialization or export standpoint – will be a boon for Indonesia, particularly the Cilegon area," Rosan said.

Source: https://jakartaglobe.id/business/lotte-chemicals-39-billion-cilegon-plant-to-begin-production-in-marc

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