Lubricant World

Shell In­done­sia to dou­ble ca­pac­ity of its world-class lu­bri­cant blend­ing plant

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Shell In­done­sia to­day an­nounce its in­vest­ment to dou­ble the pro­duc­tion ca­pac­ity of its world- class lu­bri­cants oil blend­ing plant ( LOBP) lo­cated in Marunda Cen­tre, near Jakarta, In­done­sia. Upon com­ple­tion, the plant will be ca­pa­ble of pro­duc­ing up to 300 mil­lion litres of fin­ished lu­bri­cants an­nu­ally across the 9- hectare site. This ex­pan­sion will en­able Shell to meet the grow­ing de­mand of the do­mes­tic lu­bri­cants mar­ket and con­trib­ute to the ad­vance­ment of In­done­sia's down­stream in­dus­try.

Min­is­ter of In­dus­try of the Repub­lic of In­done­sia, Agus Gu­mi­wang Kar­tasas­mita, who is rep­re­sented by Muham­mad Khayam, Di­rec­tor Gen­eral of Chem­i­cal, Phar­ma­ceu­ti­cal and Tex­tile In­dus­tries at the ground­break­ing cer­e­mony event said, “The non- oil and gas pro­cess­ing in­dus­try has seen 4.34% growth in 2019. In­done­sia's at­trac­tive­ness as an in­dus­trial in­vest­ment hub is re­flected from the in­crease of the Ease of Do­ing Busi­ness In­dex com­pared to the pre­vi­ous year. Com­bin­ing this im­prove­ment with other stim­u­lus from the govern­ment and the trans­for­ma­tion to­wards in­dus­try 4.0 is ex­pected to in­crease the ca­pac­ity and in­dus­trial util­i­ties of the lu­bri­cants in­dus­try in In­done­sia, aligned with the growth of the en­tire in­dus­try.”

The Min­is­ter added that based on the 2019 data, lu­bri­cant do­mes­tic pro­duc­tion only reached 908.36 ML/ an­num. “There­fore, we ap­pre­ci­ate Shell's com­mit­ment to de­velop the do­mes­tic lu­bri­cant in­dus­try through the ex­pan­sion of

its Marunda LOBP and for suc­cess­fully ob­tain­ing the In­done­sian na­tional stan­dard cer­tifi­cate ( SPPT SNI) for all of the au­to­mo­tive lu­bri­cants prod­ucts. We hope that PT Shell In­done­sia will con­tinue to be the govern­ment's strate­gic part­ner in the lu­bri­cant in­dus­try sec­tor.”

“This im­por­tant in­vest­ment demon­strates our con­fi­dence in In­done­sia and is in line with our strat­egy to in­vest in mar­kets where there is grow­ing de­mand for lu­bri­cants,” said Car­los Mau­rer, Ex­ec­u­tive Vice Pres­i­dent, Shell Global Com­mer­cial. “Shell's Marunda lu­bri­cants oil blend­ing plant is al­ready the largest, in­ter­na­tion­ally op­er­ated lu­bri­cants plant in In­done­sia. Dou­bling its ca­pac­ity helps Shell ex­pand our busi­ness and cus­tomer base in In­done­sia, one of South­east Asia's largest lu­bri­cants mar­kets. With Shell's world- class lu­bri­cant pro­duc­tion ca­pa­bil­ity and in­te­grated sup­ply chain net­work, we will be bet­ter able to re­spond to the grow­ing de­mand in In­done­sia for pre­mium lu­bri­cants in the au­to­mo­tive, in­dus­trial and marine sec­tors.”

Newly ap­pointed Pres­i­dent Di­rec­tor and Coun­try Chair, Shell In­done­sia, Dian Andya­suri, said, “Shell is de­ter­mined to con­tin­u­ously up­hold the spirit of ' Shell Un­tuk In­done­sia' by be­com­ing a strate­gic part­ner to the In­done­sian govern­ment in the lu­bri­cants in­dus­try, an in­dus­try part­ner to push in­no­va­tion and sus­tain­abil­ity for­ward, and a part­ner for all our cus­tomers to help en­hance their mo­bil­ity with SNI cer­ti­fied and high qual­ity oil prod­ucts. Through in­vest­ment in build­ing a world- class au­to­mated fa­cil­i­ties, with strong local rel­e­vance and sus­tain­able fac­tory op­er­a­tions, Shell hopes to con­trib­ute in sup­port­ing In­done­sia's am­bi­tions to be­come one of the largest economies in the world.”

Shell be­came the first in­ter­na­tional brand to re­ceive the In­done­sian Na­tional Stan­dard ( SNI) for its au­to­mo­tive lu­bri­cants prod­ucts. Three prod­ucts from Shell, Argina ( lu­bri­cant for medium speed diesel en­gines), Rim­ula ( lu­bri­cant for heavy- duty diesel en­gine) and Tel­lus ( lu­bri­cant for hy­draulic flu­ids) have re­ceived cer­ti­fi­ca­tion from the Min­istry of In­dus­try, demon­strat­ing the com­pany's lead­er­ship to com­ply with local reg­u­la­tions through the com­pli­ance of the local con­tent reg­u­la­tion ( TKDN).

In­done­sia is among the world's top ten big­gest lu­bri­cant mar­kets and is ex­pected to be the largest in terms of mar­ket de­mand in South­east Asia by 20201. The growth comes from ris­ing ap­pli­ca­tions in key in­dus­tries in­clud­ing au­to­mo­tive and trans­porta­tion, man­u­fac­tur­ing, min­ing, con­struc­tion, agri­cul­ture, and power gen­er­a­tion. In ad­di­tion, the Govern­ment of In­done­sia's plan to ad­vance to­ward In­dus­try 4.0 un­locks more op­por­tu­ni­ties for ad­vanced ma­chiner­ies that re­quire high­qual­ity lu­bri­cants.

Shell also seeks to be a good neigh­bour. Since De­cem­ber 2015, Shell ini­ti­ated a com­mu­nity- based waste man­age­ment pro­gramme, called as ‘ Desa BERSEMI' ( Clean, Healthy and Self- suf­fi­cient vil­lage) in two vil­lages, Pan­tai Mak­mur and Se­gara Mak­mur, lo­cated within the vicin­ity of the Marunda plant. The pro­gramme fo­cuses on de­vel­op­ing a clean and healthy liv­ing en­vi­ron­ment, en­trepreneur­ship and cir­cu­lar econ­omy think­ing such as: a com­mu­nity com­post area, a “waste bank” where res­i­dents can lo­cals can trade re­cy­clables for cash; a small- scale ur­ban farm for medic­i­nal plants and com­mon veg­eta­bles; and small hand­i­craft busi­nesses us­ing non- re­cy­clable waste. To date, the pro­gram has ben­e­fited 200 house­holds.

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