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Indonesia says land dispute over Lotte Chemical's $4.2 billion plant resolved

Christian Fernsby |
Indonesia said a land dispute over a $4.2 billion investment by the local unit of Lotte Chemical has been settled, clearing the way for the completion of the South Korean firm's naphtha cracker plant.

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The dispute has been a major hurdle to the construction of the plant by PT Lotte Chemical Indonesia in the port city of Cilegon, situated in the northwest of Java island, for the past three years, Indonesian Investment Coordinating Board (BKPM) chief Bahlil Lahadalia told a news conference.

"When I became the head of BKPM, there was a (total of) 708 trillion rupiah ($50.28 billion) investment potential that hadn't been realised, including this $4.2 billion by Lotte," said Lahadalia, who has been President Joko Widodo's investment chief since October.

Lahadalia said he had helped resolve some of the problems but some 500 trillion rupiah of investment plans were still facing "land, location permit, financial closing and environmental study problems".

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