Indonesia Has Great Potential For The Lubricant Industry

JAKARTA - The Ministry of Industry (Kemenperin) stated that Indonesia has great potential in the manufacturing industry and the lubricant industry due to the size of its market.

In the groundbreaking ceremony for the construction of the fat Shell Indonesia manufacturing factory in Jakarta, Monday, March 4, the Director of Kimia Hilir and Pharmacy at the Ministry of Industry Emmy Suryandari said that Indonesia has a large domestic market considering that this country is the fourth largest population in the world, with the number of vehicles continuing to increase.

This condition, he continued, encourages high demand for lubricant products and other processed products in the country.

Emmy explained that investment in the manufacturing sector in Indonesia reached IDR 162.3 trillion in the 4th quarter of 2023. This figure shows an increase of 22.5 percent compared to the same period in 2022.

The manufacturing sector also contributed 44.4 percent to Indonesia's total investment in the 2nd quarter of 2023 which reached IDR 365.8 trillion.

"This shows that Indonesia is able to maintain investment attraction with the size of its market, abundant natural resources, economic growth, and cooperation with relevant stakeholders to implement government regulations," Emmy said, as reported by Antara.

Emmy said that currently there are 52 lubricant companies registered in the national industrial information system, with an installed capacity of around 2 million kilo liters per year and production of around 1.2 million kilo liters per year. This industry also absorbs 4,898 workers in 2023.

However, Emmy said that currently the lubricant industry is still concentrated on the island of Java, therefore, he hopes that in the future there will be more investment for the lubricant industry outside Java.

This is expected to increase equitable economic growth throughout Indonesia.

"Because in terms of the number of our vehicles is quite large, our population is large... our passenger vehicles have a lot of opportunities," he said.

"With investment outside Java, it is hoped that the distribution chain will be quickly reached by consumers so that it can increase equitable economic growth throughout Indonesia," he concluded.