Investment

Lotte Chemical Indonesia will build a US$3.5 billion petrochemical complex in Cilegon

Lotte Chemical Indonesia will build a US$3.5 billion petrochemical complex in Cilegon, Banten, marked with the laying of a cornerstone by Industry Minister Airlangga Hartarto on Friday. He explained that petrochemical industry is as important as steel industry as a mother industry.

“For that, we need to preserve the environment and stable business climate that this project could be successfully implemented,” Airlangga said when inaugurating the groundbreaking ceremony here on Friday.

The minister said petrochemical industry is capital and technology intensive and big consumer of energy , therefore, it needs special addressing from the government sustainable development steps.

In the roadmap of Making Indonesia 4.0, chemical industry is included in priority sector for development to become a pioneer in the application of the fourth industrial revolution,¿ he said.

The industry minister expressed appreciation for PT Lotte Chemical Indonesia for its plan to build a petrochemical complex on a 100 hectare plot of 2 million tons of naphtha per year. The feed stock would be processed into 1 million tons of ethylene,520,000 tons of propylene, 400,000 tons of polypropylene and other derivatives having high added value.

The production of PT. Lotte Chemical Indonesia will be for domestic consumption and for exports. Construction of its infrastructure is expected to need 1,500 workers and the number could rise to 4,000 in 2019-2023.

PT Lotte has answered invitation by President Jokwo Widodo (Jokowi) to boost investment in the manufacturing sector to reduce dependence on imports for certain industrial basic materials to redress the country’s trade balance, Airlangga said.

The Minister said he would help accelerated implementation of the project to help reduce imports of petrochemical materiala to at least 50 percent.

“We also hope the project would give priority to local components and local workers.

Republika

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