Shell Indonesia is doubling the capacity of its lubricants oil blending plant (LOBP) located in Marunda Centre, near Jakarta. The construction started on March 12 and is expected to be completed by 2022. Once ready, the plant will be able to produce up to 300 million liters of lubricants annually.
The expansion will enable Shell to capitalize on the growing demand of the Indonesian market. Indonesia is among the world’s top ten biggest lubricant markets and is expected to be the largest in terms of market demand in South East Asia by 2020. The government’s plan to advance towards Industry 4.0 opens up more opportunities for advanced machineries that need high-quality lubricants, which Shell can supply. Key targeted industries include automotive and transportation, Manufacturing, mining, construction, agriculture and power generation.
Shell became the first international brand to receive the Indonesian National Standard (SNI) for its automotive lubricants products. The Ministry of Indonesia has also issued certification for three products from Shell for its compliance with local content regulation (TKDN). They are Argina (lubricant for medium speed diesel engines), Rimula (lubricant for heavy-duty diesel engine) and Tellus (lubricant for hydraulic fluids).
(Sources: The Jakarta Post; Shell)