Shell Indonesia announced its investment to double the production capacity of its world-class lubricants oil blending plant (LOBP) located in Marunda Centre, near Jakarta, Indonesia. Upon completion, the plant will be capable of producing up to 300 million litres of finished lubricants annually across the 9-hectare site. This expansion will enable Shell to meet the growing demand of the domestic lubricants market and contribute to the advancement of Indonesia’s downstream industry.



   Minister of Industry of the Republic of Indonesia, Agus Gumiwang Kartasasmita, who is represented by Muhammad Khayam, Director General of Chemical, Pharmaceutical and Textile Industries at the groundbreaking ceremony event said, “The non-oil and gas processing industry has seen 4.34% growth in 2019. Indonesia’s attractiveness as an industrial investment hub is reflected from the increase of the Ease of Doing Business Index compared to the previous year. Combining this improvement with other stimulus from the government and the transformation towards industry 4.0 is expected to increase the capacity and industrial utilities of the lubricants industry in Indonesia, aligned with the growth of the entire industry."



   Shell became the first international brand to receive the Indonesian National Standard (SNI) for its automotive lubricants products. Three products from Shell, Argina (lubricant for medium speed diesel engines), Rimula (lubricant for heavy-duty diesel engine) and Tellus (lubricant for hydraulic fluids) have received certification from the Ministry of Industry, demonstrating the company’s leadership to comply with local regulations through the compliance of the local content regulation (TKDN).

   Indonesia is among the world's top ten biggest lubricant markets and is expected to be the largest in terms of market demand in Southeast Asia by 20201. The growth comes from rising applications in key industries including automotive and transportation, manufacturing, mining, construction, agriculture, and power generation. In addition, the Government of Indonesia’s plan to advance toward Industry 4.0 unlocks more opportunities for advanced machineries that require high-quality lubricants.