Cilegon. Indonesia expects to save around $1.4 billion in annual petrochemical imports following the launch of Lotte Chemical Indonesia’s (LCI) new integrated petrochemical complex in Cilegon, Energy and Mineral Resources Minister Bahlil Lahadalia said on Saturday.

The facility, inaugurated by President Prabowo Subianto on Friday, represents one of Indonesia’s largest industrial investments, valued at $3.9 billion. Construction took more than five years, covering land preparation, permitting, and full-scale engineering.

According to company data, the plant is capable of processing 3,200 kilotons per year (KTA) of naphtha feedstock -- half of which can be replaced with liquefied petroleum gas (LPG). The output includes upstream products such as ethylene (1,000 KTA), propylene (520 KTA), mixed C4 (320 KTA), pyrolysis gasoline (675 KTA), pyrolysis fuel oil (26 KTA), and hydrogen (45 KTA).

Downstream, the facility will produce high-density polyethylene (HDPE, 250 KTA), linear low-density polyethylene (LLDPE, 200 KTA), polypropylene (PP, 350 KTA), butadiene (140 KTA), raffinate (180 KTA), and benzene, toluene, and xylene (BTX) totaling 400 KTA. The value of these downstream products is estimated at $2 billion per year, Bahlil said.

“About 70 percent of total production will be absorbed by the domestic market, while 30 percent will be exported. With this plant in operation, we no longer need to rely heavily on imported petrochemicals,” he said.

The plant’s products will serve as raw materials for a wide range of industries -- from plastics, automotive components, and cables to medical equipment, rubber, insecticides, and paints.

“Indonesia’s downstream industrialization program extends beyond the mineral and coal sectors -- it now includes oil and gas–based industries,” Bahlil said.

Lower import reliance in the petrochemical sector is also expected to ease pressure on Indonesia’s trade balance, he added.