Jakarta, CNBC Indonesia – President Joko Widodo inspected the construction site of the PT Lotte Chemical Indonesia (LCI) factory complex in Cilegon City, Banten, Tuesday (12/9/2023). He targets construction of this project to be completed in March 2025.
For your information, this factory complex stands on an area of 100 hectares, which will process naptha crackers into ethylene, propylene, polypropylene and others. Meanwhile, naptha is a purification that comes from crude oil or natural gas
“So this morning we were at the Lotte Chemical industrial factory. This project started in 2020 and will be completed in 2025,” said Jokowi when giving a press statement.
He explained that this factory would start operating in March 2025. Currently, the construction progress of the factory, which was built since 2020, has reached 73%, the investment value has reached IDR 60 trillion or US$ 3.9 billion.
It is hoped that once completed, it will be able to absorb a large workforce and also produce 17 chemical products such as ethylene, polypropylene, gasoline and others which can substitute for imports that have occurred so far.
“And I am happy that this will be 70% import substitution for local, 30% for export. Both are good because what is used domestically is a substitute for our imported petrochemical goods,” said Jokowi.
On a separate occasion, Deputy for Investment Implementation Control at the Ministry of Investment/BKPM, Yuliot, explained that labor absorption from this production facility would reach 1,000 people during production, while during construction it had already reached 13,000 people.
Apart from that, this factory can substitute chemical products that have been imported from abroad. Meanwhile, the rest will be exported to markets in Asia.
“This is for import substitution. Later we will import quite a lot of these chemicals. Some will also be exported to meet the domestic market. If we look at the export share from the plans, some will go to China, some will go to other Asia,” said Eliot.
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