Published on October 31, 2025, by Bisnis.com
By Akbar Evandio
Bisnis.com GYEONGJU – Investment and Downstreaming Minister Rosan Roeslani said Danantara Investment Management Agency is studying the opportunity to acquire 35% stake in Lotte Chemical project in Cilegon, Banten.
Rosan said the project worth US$4 billion or about Rp66.5 trillion (US$1=Rp16,600) is among the largest South Korean investments that will be inaugurated by the Indonesian government soon.
He said Lotte Chemical has finished the construction of an integrated chemical industry facility and it plans to inaugurate the project on November 6, 2025, which will be attended by the chairman of the South Korean company.
The statement was made by Rosan after accompanying President Prabowo Subianto in a bilateral meeting with New Zealand Prime Minister Christopher Luxon on the sideline of APEC Summit 2025 on Friday (31/10).
“I’ll be meeting Lotte Chemical as they have concluded a US$4 billion investment. Its chairman is planned to depart to Indonesia on the sixth [of November],” Rosan said.
During the process, Lotte Chemical opens an opportunity for Danantara to join the company’s structure by investing in in. The offer, Rosan said, is currently being thoroughly evaluated.
“They offered 35%, but we are currently reviewing it because this is a very good product and the project has also been completed. The risks are also more measurable. We can see the potential going forward. Now I have ordered an immediate review of Lotte’s offer,” he explained.
Rosan further stated that Danantara’s participation would likely be through direct investment, not through a state-owned enterprise (BUMN).
“We are reviewing it, perhaps through direct investment, not through a BUMN,” he said.
Regarding the capital requirements for the 35% share ownership, Rosan stated that the government is reviewing the project’s financing structure, which consists of equity and debt components.
“We are still reviewing. Of the total US$4 billion, there is equity and debt. Indeed, their equity is approximately US$1.7 billion, we will see later,” Rosan concluded.
The Lotte Chemical Indonesia New Ethylene Project (LINE Project) in Cilegon is one of the largest petrochemical investments in Southeast Asia, projected to strengthen the national chemical raw materials industry and reduce dependence on imports.
Danantara’s move to enter this project is considered in line with the industrial downstreaming strategy, a top priority of President Prabowo’s administration, and represents a concrete manifestation of the synergy between global investors and national investment funds in developing a high-value-added industrial sector.