Lotte Plans $5b Petrochemical Plant in Indonesia
Insider Stories - Lotte Chemical Corporation, part of Lotte Group, South Korea’s conglomerate with diversified businesses, plans to build a $5 billion petrochemical plant in Cilegon, Indonesia’s Banten province, a high level official at the industry ministry said.
Kim Gyo Hyun, Executive Director of Lotte Chemical, came to Indonesia and visit Indonesia’s Industry Minister office on Friday.
Panggah Susanto, director general of manufacturing industry at Indonesia’s industry ministry, said Lotte is completing legal requirement to establish its factory here. He expected construction can start this year.
“If everything goes smoothly, hopefully all can be started this year,” said he said, adding construction is likely to take 3-4 years.
Indonesia is stepping up effort to draw investors in petrochemical sector to reduce export dependancy and secure adequate supply of petrochemical products at home.
Panggah said, with investment from Lotte, Indonesia can help secure supply for various petrochemical products like polyethilyne and polyprophelyne at home.
They are important substances in plastic making.
Panggah said Indonesia needs to spend around $5 billion to $6 billion to import petrochemical products from overseas. Lotte’s investment, he said can reduce this import cost by 20 percent.
