Danantara in advanced talks to acquire minority stake in Lotte Chemical Indonesia’s Cilegon complex

Indonesia’s sovereign wealth fund, Danantara, is in advanced negotiations to acquire a significant stake in Lotte Chemical Indonesia (LCI) in a deal estimated at about US$1.7 billion. The potential investment is tied to LCI’s newly commissioned petrochemical complex in Cilegon, marking one of the country’s largest recent industrial transactions.

Danantara said it is reviewing several ownership structures, with discussions currently centred on a 25–30% equity interest. Talks remain ongoing and no binding agreement has been reached.

LCI’s Cilegon complex, which came onstream in May 2025, houses a mixed feed cracker with annual capacity of 1 million tons/year of ethylene and a 520,000 tons/year propylene. Downstream assets include a 250,000 tons/year PP plant. 

The negotiations have drawn attention within regional markets partly due to recent shifts in LCI’s shareholding structure. Lotte Chemical Corporation (LCC) previously offloaded a 25% stake in a Price Return Swap (PRS) agreement valued at USD 462.7 million, reducing its ownership from 49% to 24%. 

LCI is currently jointly owned by Lotte Chemical Titan Malaysia (51%), LCC (24%) and a South Korean consortium (25%).

For Danantara, the acquisition would represent a strategic push into large-scale industrial infrastructure aligned with Indonesia’s long-term economic objectives. Analysts say the move could bolster the country’s downstream manufacturing capacity, improve trade fundamentals and spur development in surrounding communities.

Written by: Farid Muzaffar