ExxonMobil to Expand Indonesia Blend Plant


As part of a strategy to grab a bigger share of Indonesia’s lubricant market, ExxonMobil plans to double the size of its local manufacturing plant, according to a news report last week.

The American energy giant held a news conference April 6 where officials disclosed that the company has purchased land next to its blending plant in Cilegon, on the northeast tip of Indonesia’s Java island. The Indonesian automotive news site Otomotifnet reported PT ExxonMobil Lubricants Market Development Director Sri Adinegara stating that the company will expand the facility’s production capacity to 200,000 metric tons per year.

ExxonMobil acquired the plant in 2018 when it purchased PT Federal Karyatama, which at the time was one of the largest domestic independent lube suppliers in the country.

The Otomotifnet article did not report a schedule for the expansion, and Lube Report was unable to reach ExxonMobil for comment.

The article reported that officials also said the company is expanding its sales network in Indonesia and now has more than 40 national distributors carrying its products and that it supplies more than 16,000 workshops throughout the archipelago.

Indonesia is one of the larger lubricant markets in the Asia-Pacific region and is expected to continue growing thanks to rising incomes, economic growth and an expanding vehicle population.