Prabowo Underscores Legal Certainty as โKey to Investor Confidence During Lotte chemical Indonesia Project Launch
President Prabowo Subianto, during โคthe launch of the US$3.9 billion PT โLotte Chemical Indonesia factory, delivered a key message to Investment Minister Bahlil Lahadalia and coordinating Minister for Maritime Affairs and Investment Luhut โBinsar Pandjaitan: building investor confidence hinges on consistent law enforcement and business certainty. The message was relayed as the project was highlighted as a symbol of strong economic ties between Indonesia and South Korea.
The factory, officially known as the LINE Project (Lotte Chemical Indonesia New Ethylene project), represents one of the โlargest โForeign Direct investment (PMA) projects in Indonesia and the โlargest petrochemical investment โin Southeast โAsia. It boasts an ethylene production capacity โคof 1,000 kilo tons per year (kTA), making it the largest ethylene factory in Indonesia and the first naphtha crackerโ factory to be established in the country in three decades.
“Everything is based on trust.if โwe are consistent withโข theโ rule of law, providing legal certainty, โthen โคtrust can emergeโข from anywhere and we will quickly move towards prosperity,” Prabowo stated, emphasizing the foundational importance of a stable legal framework.
The โproject is expectedโ to significantly reduce Indonesia’s reliance on imported petrochemical raw materials and bolster national industrial independence. It’s projected to create over 21,000 direct and indirect jobs and drive growth โฃin downstream industries like plastics,textiles,automotive,and packaging.
Lotte Corporation CEOโฃ and Chairman Shin Dong-bin affirmed Lotte’s commitment to continued investment and expansion โคinto high value-added petrochemical products, aligning โขwith Prabowo’s vision of a “Strong and Independant โฃindonesia.”
Minister Luhut Pandjaitan highlighted the project as a concrete example of Indonesia’s downstream investment policy, a national priority aimed at โmaximizing added value by processing resources domestically. He noted the factory’s presence demonstrates global investorโ confidence in this policy and is expected to attract further investment in downstream sectors.
South Koreaโ isโ a significant investor in Indonesia, realizing US$12.8โฃ billion in investment between 2020 and Septemberโค 2025, making it the 7thโข largest investor with an average annual growth of 14.3 percent. โข Bahlilโ Lahadalia, in a written statement dated November 6, โข2025, underscored the project’s role in strengthening โeconomic relations between the โtwo nations and their commitment to cooperation in industry, energy, and sustainable โฃtechnology.
(ily/hns)
