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South Korea’s Lotte Chemical Corp. has officially begun commercial operations at its new mega-petrochemical complex in Cilegon, Indonesia, marking a major milestone for the company’s Southeast Asia expansion and for Indonesia’s downstream chemical industry.
The facility – developed under its subsidiary PT Lotte Chemical Indonesia (LCI) and known as the “LINE” (Lotte Chemical Indonesia New Ethylene) project – is built on a roughly 110-hectare site in Banten province and represents a total investment of around US $3.9-4 billion.
Construction began in 2022, achieved mechanical completion of major units in May 2025, with commercial production kicking off in October 2025.
The plant features feed-flexibility: in addition to naphtha, it can utilise up to 50 % LPG as feedstock — a design aimed to improve cost efficiency and flexibility.
Indonesia’s petrochemical feedstock self-sufficiency for ethylene was about 44 % at end of 2024. This new facility is expected to raise that rate to approximately 90 % — dramatically reducing the country’s need to import large volumes of olefin feedstocks.
According to Indonesia’s Energy & Mineral Resources Ministry and other officials, roughly 70 % of the plant’s output is targeted for the domestic market (import substitution), with the remaining 30 % for export.
Lotte Chemical Corp. (South Korea) is the developer and operator via LCI.
The project links closely to another Lotte subsidiary, Lotte Chemical Titan Nusantara (LCTN) in nearby Merak, Cilegon, which produces polyethylene and will now source ethylene locally rather than via imported feedstock — achieving greater vertical integration and cost savings.
The Indonesian government offered tax incentives, import tariff concessions and infrastructure support — underscoring the project’s alignment with the “Making Indonesia 4.0” roadmap to strengthen downstream industries.
With the scale and complexity of the LINE complex, significant demand is anticipated for high-performance materials, heavy fabrication, and advanced process equipment. This includes:
Cracke furnaces, reactors and separation columns that may require clad metal plates, high‐alloy piping, pressure vessels and heat exchangers capable of handling high temperature / corrosive feedstocks.
Raw material procurement involving large volumes of naphtha/LPG feedstocks, utilities, and downstream modules for polypropylene, butadiene, BTX – which in turn require specialized metallurgy and mechanical engineering.
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