Net income for PT Federal Karyatamas lubricants segment remained stable year on year in 2017, but its sales volumes dropped 3 percent to 61.3 million liters (54,247 metric tons).
The Indonesian supplier reported in an earnings statement last week that its revenue increased by 0.4 percent compared to the same period in 2016. No further details were disclosed.
The MPM Group subsidiary has over 3,200 branded workshops and more than 10,000 independent outlets in Indonesia selling Federal Oil and AHM brands of passenger car and motorcycle engine oils. The company said last year that it will focus on developing its aftermarket network to cater to the countrys growing automotive market.
The Indonesian [light vehicle] market is projected to increase by 4.5 percent year on year to 1 million units this year, following a 0.3 percent dip in 2017, LMC Automotive said in its ASEAN Light Vehicle Sales Update in February. Support will come from new generations of the bestselling Toyota Avanza and Daihatsu Xenia [models], the governments new Low Carbon Emission Vehicles incentive policy, and low inflation and interest rates. The Indonesian light vehicle market recorded a 9 increase in January compared to the same month last year, it added. LMC is a global automotive market intelligence company based in the United Kingdom.
In February, FKT announced that it had restructured its lubes segment, resulting in a 67 percent increase in capacity, or around 100 million liters per year.