Shell plans to increase lubricant production in Indonesia
Royal Dutch Shell began construction works to enhance production capacity of its Marunda lubricant plant in Bekasi, West Java in March. The construction would be finished by 2022 and Shell would expand production capacity of the plant from 136,000 kiloliters a year to 300,000 kiloliters. In Indonesia, automobile sales are increasing every year, and demand for lubricating oil is expected to increase significantly. Shell has the second largest share of lubricating oil production in Indonesia, after state-run oil and gas company Pertamina. Recently, ExxonMobil and Idemitsu Kosan were also in investments which were aimed at increasing the production of lubricating oil in Indonesia. Demand for lubricating oil in Indonesia is approximately 1.15 mil kiloliters at this stage, of which about 80% is covered by domestic products.