Indonesia’s sovereign wealth agency, BPI Danantara, is reviewing an offer to acquire a 35 percent ownership stake in Lotte Chemical’s petrochemical complex in Cilegon, Banten, said Danantara CEO Rosan P. Roeslani.
Rosan said the multi-billion-dollar plant − one of Indonesia’s largest downstream chemical projects − is now in its final phase of completion and is expected to be officially inaugurated on Thursday, November 6, 2025.
“They (Lotte) have offered a 35 percent stake, and we are currently assessing it because it’s a very promising product,” Rosan said on the sidelines of President Prabowo Subianto’s bilateral meeting with New Zealand Prime Minister Christopher Luxon in Gyeongju, South Korea, on Friday, October 31, 2025.
He added that the investment risk for this project is relatively manageable, given its near-completion status and strong future revenue potential.
“This project is almost finished, so the risks are much more measured,” he said.
Rosan noted that Danantara plans to invest directly, without going through state-owned enterprises (SOEs).
“We may invest directly, not via SOEs,” he said.
The government is currently reviewing financing structures for Danantara’s potential entry into the project, including a mix of equity and debt components to meet the capital requirements for the 35 percent stake.
President Prabowo Subianto earlier instructed Danantara to participate in the project following his meeting with Lotte Chemical Corporation President Young Jun Lee at the Merdeka Palace in Jakarta on April 28, 2025. The meeting was part of a broader engagement with 19 major South Korean companies under the Federation of Korean Industries (FKI).
The Lotte Chemical petrochemical complex carries an investment value of US$3.9 billion (Rp59.8 trillion) and will produce 17 petrochemical commodities, including ethylene, polypropylene, and gasoline. Approximately 70 percent of the plant’s output will be allocated for domestic use, supporting Indonesia’s downstream industrial development.
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