Global Processing

South Korea’s Honam to build $5 billion petrochemical plant in Indonesia

April 23, 2012

JAKARTA, Indonesia — South Korea’s Honam Petrochemical Corporation announced today it will build a $5 billion petrochemical plant in Cilegon, Indonesia, reported.

"Honam has explored the possibility of investment in Indonesia and chosen Cilegon as the plant''s location," Azhar Lubis, deputy for investment control and realisation to the chief of the Investment Coordinating Board (BKPM), said.

The land may be located at PT Krakatau Industrial Estate Cilegon (KIEC), a subsidiary of state steel manufacturer PT Krakatau Steel.

The investment plan, however, could not yet be completed since Homan has not reached an agreement with Krakatau Steel on the use of the land.