We are still finalizing the new plant capacity, preparation and design Adhiatmadja said. Obviously it will be bigger than the two current facilities. We hope we could start with ground-breaking toward the end of this year.

The new plant will be constructed in the west end of Java, in the province of Banten, around the Merak-Cilegon-Bojonegara area.

FKTs two existing blending plants are in the Pulogadung Industrial Estate in East Jakarta, Java. The total blending capacity for both plants is about 45,000 kiloliters per year. Its filling and packaging operations, which handle some private-label jobs, have capacity close to 100,000 kiloliters per year. The company produced and packaged 60,632 kiloliters of motor oil in 2013, up 8 percent from the previous year.

Adhiatmadja did not provide an exact date that the company will shut down the existing facilities, but noted that it wont be until after the new facility is fully functional.

According to the companys annual report, its share of the domestic lubricant market reached 22 percent in 2013, up from 21 percent in 2012. A press statement from MPM said FKTs revenue for the first half of 2014 was Rupiah 814 billion (U.S. $68 million), up 8 percent compared to the same period in 2013.

KFT markets motorcycle oil under its Federal Oil brand and also blends and packages AHM-branded lubricants for Honda Motorcycles.

Listed on the Indonesia Stock Exchange since May 2013, MPM is a holding company with operations in the retailing and distribution of Honda motorcycles, sales and service of Nissan and Datsun automobiles, vehicle rentals, and more.