Indonesia has officially launched a major new petrochemical complex built by South Korea’s Lotte Chemical, marking a significant step toward expanding local production of key industrial materials.

President Prabowo Subianto unveiled the $4 billion facility on Thursday, saying the government will continue supporting foreign investors whose projects strengthen Indonesia’s manufacturing base and offer long-term economic gains.

Located in Cilegon, the plant began commercial operations in October and includes Indonesia’s first new naphtha cracker in three decades. It is designed to produce about 1 million metric tons of ethylene each year, a core ingredient used in plastics and a wide range of industrial products.

The Energy and Mineral Resources Ministry expects the new capacity to dramatically cut Indonesia’s dependence on imported ethylene, with projections showing a reduction of more than 90%.

Lotte Group chairman Shin Dong-bin said the company intends to deepen its commitment to Indonesia by investing in additional high-value petrochemical products that could further boost the country’s industrial capabilities.

The project forms part of Indonesia’s broader push to build a stronger downstream petrochemical sector and reduce exposure to global supply pressures.