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Indonesian company Danantara, led by Rosan, is set to undertake a thorough due diligence process to evaluate teh profitability of acquiring shares in lotte’s petrochemical project in Indonesia. The potential acquisition, involving a notable investment, was offered to Rosan during the 2025 APEC Summit in Gyeongju, South Korea, in late October. This follows Lotte’s existing substantial investment of approximately US$4 billion (rp. 66.63 trillion as of November 27, 2025, using an exchange rate of Rp. 16,659/US$) in Indonesia.
Details of the Potential Acquisition
Rosan stated that officials from Lotte will visit indonesia this November to further discuss the share acquisition offer. The due diligence process is considered crucial given the large value of the potential investment. The specific details of the share offering, including the percentage of shares available and the proposed price, have not yet been publicly disclosed.
Lotte’s Existing Investment in Indonesia
Lotte’s current US$4 billion investment in Indonesia demonstrates the company’s commitment to the Indonesian market. This investment likely encompasses various projects and sectors, with the proposed petrochemical project representing a significant expansion of their operations. https://www.reuters.com/markets/deals/lotte-chemical-invests-4-bln-indonesia-petrochemical-plant-2022-12-16/ (Reuters reported on Lotte Chemical’s $4 billion investment in December 2022)
What is Due Diligence?
Due diligence is a comprehensive investigation of a business or person prior to a contract or agreement. In the context of an acquisition, it involves a detailed review of the target company’s financial records, legal standing, operational performance, and potential risks. the goal is to confirm all material facts and identify any potential issues that could affect the value of the investment. A robust due diligence process is essential for making informed investment decisions and mitigating risks.
Key takeaways
* Danantara is considering acquiring shares in Lotte’s indonesian petrochemical project.
* A comprehensive due diligence process will be conducted to assess the profitability of the acquisition.
* Lotte has already invested US$4 billion in indonesia, signaling a strong commitment to the country.
* Lotte officials will visit Indonesia this November to discuss the offer further.
Looking Ahead
The outcome of the due diligence process will be critical in determining whether Danantara proceeds with the acquisition. A triumphant acquisition could considerably expand Danantara’s presence in the petrochemical sector and contribute to Indonesia’s economic growth. Further updates will be available as the due diligence process unfolds and negotiations progress.