Indonesian President Prabowo Subianto speaks at the inauguration of the petrochemical factory in Cilegon city, Banten. VNA/VNS Photo

JAKARTA — Indonesia inaugurated the largest petrochemical factory in Southeast Asia, operated by the Republic of Korea (RoK)’s Lotte Chemical Indonesia (LCI), in Cilegon city, Banten, on Thursday.

Indonesian President Prabowo Subianto officially launched the modern plant by pressing a siren button alongside Energy and Mineral Resources Minister Bahlil Lahadalia and Minister of Investment and Downstreaming Rosan Roeslani, among others.

Speaking at the event, Prabowo said the start of operations at the factory is a source of national pride, while reaffirming the Government’s commitment to promoting foreign investment.

Built with an investment of around US$4 billion, the LCI petrochemical plant spans nearly 108 hectares. It is projected to produce a range of strategic products, including 1,000 kilotons of ethylene annually.

The facility is also designed to manufacture 520 kilotonnes of propylene, 350 kilotonnes of polypropylene, 140 kilotonnes of butadiene, and 400 kilotonnes of benzene/toluene/xylene each year, with tens of thousands of workers employed.

It is the fifth of its kind after similar Lotte plants in the RoK, Mexico, the US, and Malaysia.

Indonesia Investment Minister Roeslani said Lotte Chemical Corporation - LCI’s parent company - has offered a 35 per cent stake for Indonesia’s Investment Management Agency Danantara. He noted that the agency prefers to pursue the investment directly rather than through a state-owned enterprise under its management.

He added that Danantara is currently assessing viable financing strategies for the proposed acquisition. VNA/VNS