The Ministry of Industry (Kemenperin) asserts Indonesia's significant potential in the processing and lubricant industries due to its substantial market size. During the groundbreaking ceremony for the Shell Indonesia lubricant manufacturing plant in Jakarta, Director of Downstream Chemical and Pharmaceutical Industries at Kemenperin, Emmy Suryandari, highlighted Indonesia's extensive domestic market as the fourth most populous country globally, with a continuously increasing number of vehicles. Emmy emphasized that this situation propels high demand for lubricant products and other processed goods domestically. She revealed that investment in the processing industry reached IDR 162.3 trillion in the fourth quarter of 2023, indicating a 22.5% increase compared to the same period in 2022. The processing industry contributed 44.4% to Indonesia's total investment in the second quarter of 2023, amounting to IDR 365.8 trillion.
Emmy stated that Indonesia's ability to maintain investment attractiveness is attributed to its substantial market, abundant natural resources, economic growth, and collaboration with stakeholders to implement government regulations. Currently, there are 52 registered lubricant companies in the national industrial information system, with an installed capacity of approximately 2 million kiloliters per year and production reaching around 1.2 million kiloliters per year. In 2023, the industry employed 4,898 individuals. However, Emmy noted that the lubricant industry is predominantly concentrated in Java, expressing hope for increased investments outside Java to promote even economic growth across Indonesia. This strategic move is anticipated to facilitate quick consumer access through an expanded distribution network, ultimately fostering more inclusive economic growth throughout the country.
