Cilegon: Lotte Chemical Corp. has launched a new petrochemical plant in Indonesia as part of efforts to expand its presence in the Southeast Asian petrochemical market, the company said Friday. The petrochemical arm of South Korea's major retail conglomerate Lotte Group held an opening ceremony for the new plant on Thursday with Indonesian President Prabowo Subianto in attendance.

According to Yonhap News Agency, Lotte Group Chairman Shin Dong-bin highlighted the significance of the project, stating it represents one of the largest investments made by a South Korean business in Indonesia. He also remarked that the plant symbolizes strong bilateral relations and is expected to bolster Indonesia's petrochemical industry and national competitiveness.

Lotte Chemical started construction of the plant in 2022 on a 110-hectare site with an investment of US$3.9 billion. The plant was completed in May and underwent a three-month pilot run. The facility boasts an annual production capacity of 1 million tons of ethylene, 520,000 tons of propylene, and 350,000 tons of polypropylene, among other petrochemical products.

Jakarta has been promoting its "Making Indonesia 4.0" initiative, which focuses on fostering major manufacturing industries, including the chemical sector. A Lotte Chemical official stated that the company aims to target the Southeast Asian market, which holds high growth potential, by establishing Indonesia as a major hub.