PT Asahimas Chemical (ASC) and PT Lotte Chemical Indonesia (LCI) have entered into a strategic partnership through the signing of a Long-Term Sales and Purchase Agreement for Ethylene Supply.
(PT Asahimas Chemical (ASC) dan PT Lotte Chemical Indonesia (LCI) on signing ceremony ethylene sales and purchase agreement, 2025)PT Asahimas Chemical (ASC) and PT Lotte Chemical Indonesia (LCI) have entered into a strategic partnership through the signing of a 10-year Long-Term Sales and Purchase Agreement for the supply of ethylene. This collaboration marks a significant milestone in strengthening Indonesia's petrochemical supply chain and reducing dependence on imported raw materials.
Under the agreement signed on Wednesday, May 7, LCI will supply ethylene — a key raw material in the petrochemical industry — to ASC for its production processes. The partnership is expected to enhance operational efficiency while supporting the growth and development of the domestic petrochemical sector. This initiative also aligns with the Indonesian government's downstream industry development programs. By ensuring a stable, domestically sourced ethylene supply, ASC and LCI contribute to the sustainability of the national petrochemical industry.
President Director of ASC, Eddy Sutanto, stated that this partnership represents a strategic move to create a more efficient and sustainable petrochemical industrial ecosystem, particularly through increased local ethylene supply. This will optimize the use of local raw materials to meet market demand more effectively and promote the increase of Domestic Component Level (TKDN). Furthermore, this step is expected to strengthen the resilience of the national petrochemical industry, which will also have a positive impact on the availability of basic chemical products — currently a key focus area of the government's mineral down streaming efforts.
