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Danantara to include Lotte petrochemical project
The petrochemical company offered Indonesia the opportunity to participate and President Prabowo Subianto agreed to local participation through Danantara, which the wealth fund will explore.
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A sign for sovereign wealth fund Danantara Indonesia is seen in front of its headquarters in Jakarta on Feb. 28, 2025. (Reuters/Willy Kurniawan)
I
ndonesia’s sovereign wealth fund Danantara will include a petrochemical project backed by South Korea’s LOTTE Group subsidiary LOTTE Chemical.
That is according to Coordinating Economic Minister Airlangga Hartarto, who held a press conference on Monday after meeting with President Prabowo Subianto at the Presidential Palace complex.
“The petrochemical company has offered Indonesian participation. Bapak President, in principle, agreed that Indonesia will participate in LOTTE Chemical’s [project]. And Danantara was given the task of exploring and following up on the investment,” said Airlangga.
He said the facility would be “inaugurated” in either September or October and it was a “large petrochemical plant”.
South Korea is Indonesia’s seventh-largest source of foreign direct investment, contributing almost US$3 billion last year, just ahead of Japan, according to Investment and Downstream Ministry data.
The meeting with the President also welcomed 19 South Korean businesses belonging to the Federation of Korean Industries (FKI), with 18 of these already having established a presence in Indonesia.
The companies in the FKI have contributed a total of $15.4 billion in investment over the past years and the group plans to add another $1.7 billion, said Airlangga.
