Jakarta (ANTARA) – Indonesia inaugurated a $3.98 billion petrochemical plant in Cilegon, Banten, on Thursday, a milestone project that Energy and Mineral Resources Minister Bahlil Lahadalia said would cut the nation’s dependence on imported petrochemicals and boost industrial competitiveness.“With this factory, we will no longer need to import large volumes of petrochemical products,” Lahadalia said during the inauguration ceremony, attended virtually from Jakarta.Built with South Korean investment from Lotte Corporation, the plant is part of an integrated petrochemical complex designated as a national strategic project. It has the capacity to process three million tons of naphtha annually into a variety of petrochemical products.The facility is expected to produce 1 million tons of ethylene, 520,000 tons of propylene, 400,000 tons of benzene, toluene and xylene, 350,000 tons of polypropylene, and 140,000 tons of butadiene each year.About 70 percent of the plant’s output, valued at roughly $1.5 billion, will substitute imported products. Total annual sales are projected to reach around $2 billion.The new complex is integrated with an existing facility capable of producing 450,000 tons of polyethylene a year and designed to use liquefied petroleum gas as an alternative feedstock to naphtha.“Today marks Indonesia’s expansion of its downstreaming agenda beyond minerals and coal into the oil and gas sector,” Lahadalia said.He added that the Lotte project is Indonesia’s first large-scale petrochemical investment in three decades since the Chandra Asri complex built during former president Soeharto’s era.Under President Prabowo Subianto’s leadership, Lahadalia said, Indonesia aims to maximize its natural resources through downstreaming and foreign investment to create jobs and strengthen industrial competitiveness.The project has generated 17,000 direct jobs and is expected to benefit about 40,000 people directly and indirectly, according to the minister.
Cilegon petrochemical plant to cut Indonesia\’s imports: Minister
