ExxonMobil, one of the world’s largest oil and gas companies, is making a significant move to expand its presence in Indonesia’s lucrative lubricant market. The American energy giant is planning to double the size of its local manufacturing plant in Cilegon, on the northeast tip of Java island, to meet the increasing demand for lubricants in the country. The company recently held a news conference, where officials disclosed that it has purchased land adjacent to its existing blending plant. According to an Indonesian automotive news site, PT ExxonMobil Lubricants Market Development Director Sri Adinegara confirmed that the company aims to expand the facility’s production capacity to 200,000 metric tons per year.
ExxonMobil acquired the Cilegon plant in 2018 when it purchased PT Federal Karyatama, one of the largest domestic independent lube suppliers in Indonesia at that time. With the planned expansion, the company hopes to capture a larger share of Indonesia’s growing lubricant market. The Otomotifnet article did not report a schedule for the expansion, but it is expected to be a significant investment for the company.
Indonesia is one of the fastest-growing economies in Southeast Asia, and its lubricant market is expected to continue expanding due to rising incomes, economic growth, and an increasing vehicle population. The company’s expansion plans are also part of its broader strategy to expand its sales network in Indonesia. Currently, ExxonMobil has over 40 national distributors carrying its lubricant products, and it supplies more than 16,000 workshops throughout the archipelago.
ExxonMobil’s acquisition of PT Federal Karyatama in 2018 brought them the Cilegon blending plant, which they plan to expand to increase their production capacity in Indonesia. While a schedule for the expansion has not been reported, the company has been expanding its sales network in the country, with over 40 national distributors carrying their products and supplying more than 16,000 workshops throughout the Indonesian archipelago. The lubricant market in Indonesia is expected to continue growing due to rising incomes, economic growth, and an expanding vehicle population. ExxonMobil’s efforts to expand in this market reflect their long-term commitment to growth and innovation in the lubricant industry.