President Prabowo Inaugurates Petrochemical Factory in Cilegon

President Prabowo Subianto inaugurates Lotte Chemical Indonesia factory in Cilegon city, Banten province, Thursday (11/06). (Photo by: Bureau of Press, Media, and Information of Presidential Secretariat)

President Prabowo Subianto inaugurated Lotte Chemical Indonesia (LCI) factory in Cilegon city, Banten province, Thursday (11/06). The inauguration has marked the operation of one of the petrochemical industrial projects which represents an important milestone of the Government’s efforts to strengthen national industrial downstreaming.

The inauguration ceremony began with the audience singing the national anthem “Indonesia Raya” and followed with joint prayer. During the occasion, the audience also watched a video titled “Integrated Petrochemical Downstreaming Projects” depicting the development process of the strategic projects which have been built since 2016.

In his remarks, President Prabowo expressed appreciation for the development of this strategic project. The Head of State also encouraged investments that are potential to yield benefits for the people.

“We respect all of our partners, especially the foreign partners. They come to us, invest their money which they have earned for decades. They trust us. They give benefits to us, so we should maintain their trust,” President Prabowo said.

Meanwhile, in his report, Minister of Energy and Mineral Resources Bahlil Lahadalia mentioned that the strategic project is worth USD3.9 billion or around Rp62.4 trillion. It is one of the biggest petrochemical investments in the Southeast Asian region.

“By establishing this factory, we do not have to import massively as we did in the last year. Seventy percent of its product serves as import substitution, while the remaining 30 percent is for export. The total value, including the revenue and the annual selling, amounts to USD2 billion. So, USD1.4 billion to USD1.5 billion is reserved for domestic market, and the rest will be exported,” Bahlil said.

In this factory, naphta, the raw material, is processed into upstream and downstream products, and then it becomes an important material needed to produce plastic bottles, cables, and car bumpers. The factory is expected to boost the growth of downstream industry, improve trade balance, and make positive impacts on the local people.

The LCI inauguration was attended by Acting Ambassador of the Republic of Korea for Indonesia Park Soo Deok, Red and White cabinet ministers, National Police Chief Listyo Sigit Prabowo, Banten Governor Andra Soni, Mayor of Cilegon city Robinsar, and Lotte Group Chairman Shin Dong Bin. (Bureau of Press, Media, and Information of Presidential Secretariat) (AW/TM)