Lotte Chemical Receives Joint Support from Export-Import Bank and K-Sure for Indonesia Project

Lotte Chemical's Indonesian subsidiary has completed external financing for the construction of a local petrochemical complex.

PT LOTTE Chemical Indonesia announced on the 22nd that it has signed a contract to secure a long-term loan of $2.4 billion (3.1 trillion KRW) over 12 years from 12 global financial institutions through financial support such as loans, guarantees, and insurance from the Export-Import Bank of Korea and the Korea Trade Insurance Corporation.

The Indonesia 'LINE (LOTTE Indonesia New Ethylene)' project, being developed in Banten Province, Indonesia, is a mega petrochemical complex project producing 1 million tons of ethylene and 520,000 tons of propylene annually. The total investment amount is approximately $3.9 billion, about 5.1 trillion KRW. Mechanical completion and commercial production are targeted for 2025.

In Indonesia, a net importer of petrochemical products, the project is expected to enhance competitiveness and create synergy with the polyethylene production plant of PT LOTTE Chemical Titan Nusantara, a subsidiary of Lotte Chemical Titan.

Additionally, domestic small and medium-sized construction companies participating in this project are expected to benefit from overseas expansion effects and achieve sales performance worth approximately $700 million.

A Lotte Chemical official stated, "Despite the challenging external environment, we have successfully secured long-term stable financing to advance the establishment of overseas production bases and can further enhance our global competitiveness through business expansion in Indonesia and Southeast Asian countries."