Prabowo Underscores Legal Certainty as Key to Investor Confidence During Lotte chemical Indonesia Project Launch
President Prabowo Subianto, during the launch of the US$3.9 billion PT Lotte Chemical Indonesia factory, delivered a key message to Investment Minister Bahlil Lahadalia and coordinating Minister for Maritime Affairs and Investment Luhut Binsar 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 largest Foreign Direct investment (PMA) projects in Indonesia and the largest petrochemical investment in Southeast Asia. It boasts an ethylene production capacity of 1,000 kilo tons per year (kTA), making it the largest ethylene factory in Indonesia and the first naphtha cracker factory to be established in the country in three decades.
“Everything is based on trust.if we are consistent with the rule of law, providing legal certainty, then trust can emerge from anywhere and we will quickly move towards prosperity,” Prabowo stated, emphasizing the foundational importance of a stable legal framework.
The project is expected 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 in downstream industries like plastics,textiles,automotive,and packaging.
Lotte Corporation CEO and Chairman Shin Dong-bin affirmed Lotte’s commitment to continued investment and expansion into high value-added petrochemical products, aligning with Prabowo’s vision of a “Strong and Independant indonesia.”
Minister Luhut Pandjaitan highlighted the project as a concrete example of Indonesia’s downstream investment policy, a national priority aimed at maximizing added value by processing resources domestically. He noted the factory’s presence demonstrates global investor confidence in this policy and is expected to attract further investment in downstream sectors.
South Korea is a significant investor in Indonesia, realizing US$12.8 billion in investment between 2020 and September 2025, making it the 7th largest investor with an average annual growth of 14.3 percent. Bahlil Lahadalia, in a written statement dated November 6, 2025, underscored the project’s role in strengthening economic relations between the two nations and their commitment to cooperation in industry, energy, and sustainable technology.
(ily/hns)