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The cost of building the Lotte factory in Cilegon is IDR 16.7 trillion

November 6, 2025
6:21 PM

Jakarta, hitclubapk3 Indonesia
—
Minister
EMR
Bahlil Lahadalia
reveal the costs of building a petrochemical plant,
Lotte
Chemical Indonesia (LCI) actually increased by US$1 billion or around Rp. 16.7 trillion (assuming an exchange rate of Rp. 16,705 per US dollar) from the initial investment plan.
According to him, the investment value of the factory built in Cilegon, Banten, and inaugurated by President Prabowo Subianto on Wednesday (6/11), was initially only US$3.9 billion, but increased to US$4 billion or around Rp. 62 trillion.
“Lotte Chemical Indonesia is part of a project from the Integrated Petrochemical Complex in Cirebon, Banten Province which is included in the national strategic project (PSN). This has an investment of US$ 3.9 billion, but it seems there is a cost of run, so it has increased to US$ 4 billion,” said Bahlil in his speech at the inauguration.
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Although he did not mention the cause of the increase in the investment value of the project.However, he said that construction of the project had been stalled for a long time.
“We reported that this project had been stalled for five to six years,” he explained.
The redevelopment was carried out when he served as Head of the Investment Coordinating Board (BKPM).At that time he created a Downstreaming task force to resolve various obstacles such as land acquisition.
Then, in 2022 construction of the project began and in October 2025 it began operating.He said he even went back and forth to South Korea before construction on this project began.
“I remember very well taking care of this project in 2020-2021, I went to Korea 10 times. At that time Covid-19 was taking care of Lotte and LG. One of my staff got Covid-19 in 2021 and stayed in Korea. But in order to build unity between Korea and Indonesia, we keep moving forward, never going back,” explained Bahlil.
Bahlil said that this factory was the largest petrochemical project in Southeast Asia.This is because its capacity is greater than the Lotte petrochemical factory in Malaysia.
“So this project is the biggest in Southeast Asia, they also have Lotte in Malaysia, but here (Cilegon, Indonesia) it is the biggest,” he said.
This project, said Bahlil, is designed to produce 15 types of main products including ethylene, propylene, and various other derivative products which are important raw materials for downstream industries such as medical equipment, synthetic rubber, electrical cables, vehicle tires, as well as various manufactured products that support the needs of society and the industrial world.
The inauguration of this factory was carried out directly by President Prabowo Subianto, and was attended by Chairman & CEO of Lotte Group Shin Dong-bin, General Manager of Lotte Chemical Lee Young-joon, and Chargé d’Affaires Ad Interim of the South Korean Embassy for Indonesia Park Soo-deok, and the ministers of the Red and White Cabinet.
PT Lotte Chemical Indonesia is a petrochemical company that is committed to supporting the growth of the chemical and manufacturing industry in Indonesia and the global market.As part of Lotte Chemical Corporation, LCI built the first naphtha cracker in Indonesia in the last three decades.
This project is expected to make contributions to Indonesia, including:
a.Reducing dependence on imports of petrochemical products, where currently more than 50 percent of national needs are still met from abroad.
b.Creating jobs for around 40 thousand workers, both directly and indirectly, during the construction and operational stages.
c.Improving the quality and capacity of local human resources, through technology transfer and workforce training.
d.Encourage the growth of downstream industries, which will produce high added value products such as plastics, synthetic fibers and various manufacturing industrial components.
e.Providing economic and social benefits for surrounding communities through community empowerment, improving local infrastructure, and corporate social responsibility programs.
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(ldy/aug)