The investment of US$4 billion is the biggest foreign investment which is every made by Lotte Chemical Corporation (LCC).Jakarta (ANTARA) - South Korea’s Lotte Chemical is ready to invest US$4 billion in the construction of a petrochemical plant in Cilegon, Banten province.
PT Arkha Jayanti Persada Tbk, PT Inerco Global International, and PT Krakatau Engineering, who will direct the project, have signed a contract as part of preparations for the construction of the plant.
The plant is expected to meet domestic needs for petrochemical products, PT Inerco Global International’s president director, Hendrik Kawilarang Luntungan, said in a written statement released in Jakarta on Thursday.
The construction of the project will begin at the end of 2022 and is scheduled to be completed in 2025. Thereafter, the plant will start the production process.
The investment of US$4 billion is the biggest foreign investment made by Lotte Chemical Corporation (LCC) ever, he said.
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The presence of the plant is expected to reduce the country's dependence on imported petrochemical products, which currently make up 50 percent of the total needs, he said.
Hopefully, the plant will produce petrochemical goods that can substitute imported ones so that the country's trade balance can increase.
"On the other hand, it will bring about foreign exchange earnings and create job opportunities," he added.
Meanwhile, the president director of Lotte Chemical Indonesia, Lee Kwan-ho, as the project's owner, has signed an engineering procurement and construction (EPC) agreement with the president and CEO of Lotte Engineering & Construction, Ha Suk-joo, and CEO of Hyundai Engineering and Co Ltd. Corporation Basic Chemicals, Hwang Jin-koo.
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Translator: Satyagraha, Suharto
Editor: Rahmad Nasution
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