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PT Lintas Citra Pratama (LCP), a Cilegon-based petrochemical investor, has commenced construction of a $300 million (IDR 5.01 trillion) PET plant aimed at strengthening Indonesia’s domestic petrochemical downstream sector.

The new facility, to be built on land owned by LCP’s subsidiary PT Merak Chemical Indonesia (MCCI), will have an annual capacity of 720,000 tons. It is expected to meet growing domestic demand for PET, particularly in food and beverage packaging and recycled PET products, while reducing reliance on imports.

The project is designed to integrate PTA and PET production, enhancing supply chain efficiency and lowering costs from raw materials to finished products. Industry analysts say it represents a key step in Indonesia’s broader downstream strategy, adding value to local PTA production and improving the competitiveness of domestically produced PET.

LCP anticipates broader economic benefits, including the creation of direct and indirect jobs during both construction and operational phases. The initiative is also expected to support small and medium enterprises (SMEs) in surrounding industrial zones, generating multiplier effects for the local economy.

Construction is slated to begin in the second half of 2026, with commercial operations targeted for 2028. The plant is expected to reinforce Indonesia’s PET self-sufficiency and strengthen its position as a regional supplier within Southeast Asia.

Observers note that the project aligns with the government’s push for integrated downstream petrochemical development, offering both economic advantages and strategic resilience for the country’s plastic packaging and resin industries.

Written by: Aiman Haikal

Country
Indonesia