Pertamina Lubricants, a subsidiary of Indonesias state oil and gas company PT Pertamina, has launched the first phase of operations of the Jakarta Production Unit, in Tanjung Priok, North Jakarta, the largest integrated lubricant plant in Indonesia.
The facility consists of a lube oil blending plant (LOBP) with a capacity of 270 million liters per year, a grease plant with a capacity of 8,000 metric tons per year, and a viscosity modifier plant with a capacity of 14 million liters per year. It is twice the size of the Shell plant located in Marunda Centre, north of Jakarta, which was inaugurated last month, but smaller than Total Oil Asia Pacifics plant in Singapore, which was inaugurated in July. To build its new plant in Tanjung Priok, Pertamina has investment Rp1.3 trillion (US$93 million).
Pertamina president director Dwi Soetjipto has said that the production facilities would strengthen Pertamina Lubricants ability to face competition in the global lubricant market. "The largest lubricant production facilities in Southeast Asia are now ready to serve the needs of the domestic, automotive, and industrial market," said Dwi at the plants opening ceremony held in Jakarta.
"Pertamina could become a leader with these facilities in Jakarta, Surabaya and Thailand," said Dwi, adding that such expansion was important due to the implementation of the ASEAN Economic Community.
Pertamina Lubricants plans to increase its production capacity in the next five years by intensifying operations in eight countries and producing additives for its lubricant products.
The eight countries that will be the focus of Pertamina Lubricants plan to intensify and expand its operations are Thailand, Cambodia, Vietnam, Myanmar, South Africa, Australia, Malaysia and Singapore. The company especially aims to intensify its operations in the Southeast Asian market, using its Thailand branch as the center of its activities.
According to president director Gigih Wahyu Hari Irianto, the company plans to export 15,000 liters of lubricant next year, a significant increase from this years target of 10,000 liters. The company dominates the domestic market with a 60 percent market share and domestic sales totaling 435,000 liters. "We are aiming for domestic sales to reach 450,000 liters," he said.
Currently, PT Pertamina Lubricants has plants in Jakarta, Cilacap, Gresik, and Thailand with the production capacity of 500 million liters of lubricants per year. The plants market their products in Thailand, Myanmar, Vietnam, the Philippines, and Bangladesh.
