LOTTE Chemical (Seoul, South Korea) announced that it held a completion ceremony for LOTTE Chemical Indonesia (LCI) in Cilegon, Banten Province, Indonesia.
The ceremony was attended by LOTTE Group Chairman Shin Dong-bin, LOTTE Chemical CEO Lee Young-jun, Indonesian President Prabowo Subianto, Park Soo-deok, Chargé d’Affaires of the Korean Embassy in Indonesia, and about 300 guests and officials from both countries.
LOTTE Chemical planned the large-scale complex to strengthen its market presence in Southeast Asia, an emerging hub for the global petrochemical industry. The project, named LINE (short for LOTTE CHEMICAL INDONESIA New Ethylene Complex), required a total investment of USD 3.95 billion and was constructed on a 110-hectare (approx. 330,000-pyeong) site. Construction began in 2022 and was completed in May 2025, achieving commercial operation as scheduled and reinforcing trust with the Indonesian government. The facility is to produce 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX annually.
Petrochemicals are one of five key priority industries under Indonesia’s “Making Indonesia 4.0” roadmap, which targets an annual growth rate of around 5%. However, Indonesia’s domestic supply remains limited, with ethylene self-sufficiency at only 44% last year. With LCI’s commercial production now underway, most output will be supplied to the domestic market, potentially increasing Indonesia’s ethylene self-sufficiency rate to 90%. The project is expected to reduce import dependency, improve the trade balance, and create new jobs. The Indonesian government has supported LCI’s competitiveness through tax benefits and other policy measures. Meanwhile, since the Korean and Indonesian petrochemical markets are independent of each other, LCI’s output is expected to have minimal impact on Korean market supply or exports.
The LCI plant was built using advanced Korean engineering and design expertise to achieve high energy efficiency and carbon reduction. The facility can process up to 50% LPG feedstock in addition to naphtha, allowing for cost and operational optimization. The site also incorporates AIM (Asset Information Management) solutions—key to smart plant operations—digitally integrating all operational and equipment data, including 3D modeling, to enhance preventive maintenance and productivity.
Located nearby, LOTTE Chemical Titan Nusantara (LCTN), which produces 450,000 tons of polyethylene (PE), has now vertically integrated with the new complex by sourcing ethylene directly via on-site pipelines rather than imports, reducing logistics costs and improving profitability.
LOTTE Chemical plans to use Indonesia as a strategic hub to strengthen its market leadership in Southeast Asia and diversify its global petrochemical portfolio. At the same time, the company will continue to rationalize its domestic petrochemical business and expand its presence in high-value specialty materials, including advanced materials and fine chemicals.