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Jakarta Post

Lotte acquires land for petrochemical project

  • Stefani Ribka

    The Jakarta Post

Jakarta   /   Tue, July 11, 2017   /   07:00 am
Lotte acquires land for petrochemical project Industry Minister Airlangga Hartarto attends a meeting in Jakarta recently. (Antara/Wahyu Putro)

Lotte Chemical Indonesia has acquired land required to build its US$3.5 billion petrochemical plant in Cilegon, Banten, Industry Minister Airlangga Hartarto said Monday.

“It (the company) has acquired 60 hectares of land and still needs another 40 hectares,” he told reporters after a post-Ramadhan gathering in Jakarta.

“We’ve asked them for the construction schedule and they have asked for a tax allowance incentive. I need the latter to be made according to their new schedule. They need land, electricity and water supply."

Previously, Yoon Sungku, the president director of the firm’s sister company, South Korean chemical manufacturer Lotte Chemical Titan, said the plant would be able to produce 1 million tons of ethylene, the chemical base of a mix used in the production of plastics.

The plant, once it begins to operate, will be the second naphta cracker or ethylene-producing plant in Indonesia. The only existing plant is owned by publicly listed Chandra Asri Petrochemical and produces 860,000 tons of ethylene a year. (bbn)