Idemitsu Kosan boosts lubricant output in Indonesia by 80%

Shunichi Kito (far R), CEO of Idemitsu Kosan Co. , and Toshiki Ikeda (far L), president of P.T. Idemitsu Lube Techno Indonesia, pose at an opening ceremony for its second Indonesian lubricant plant in Bekasi, West Java, on Nov. 7, 2019. (NNA/Kyodo)

JAKARTA, NNA - Japanese refiner Idemitsu Kosan Co. has launched a new lubricant plant equipped with an automated production system to beef up its output in Indonesia by some 80 percent.

An opening ceremony for the plant was held on Thursday in the West Java provincial city of Bekasi, east of Jakarta.

Idemitsu invested $52 million to build its second Indonesian lubricant plant on an 80,000-square-meter tract of land in the Greenland International Industrial Center in Cikarang, West Java, according to the Indonesian government.

The plant has started to make engine oil for cars and motorcycles as well as industrial oils, as does the existing plant, increasing the firm’s total annual output capacity in the country to 115,000 kiloliters from 65,000 kl.

In line with the country’s policy to update the industry, the new plant is equipped with automated filling and contamination prevention systems, with inventory and product information shared with the company’s head office in Japan through a computer link.

“Demand for lubricants is expected to grow further along with the growing population in Indonesia. It is an important market with good prospects,” Kazuiku Nyudo, vice president of Idemitsu’s local arm, P.T. Idemitsu Lube Techno Indonesia, told NNA on Thursday.

He said the company will initially focus on domestic supply and hopes to increase its market share in the country to more than 10 percent.

Idemitsu plans to raise its global sales of lubricants to 1.5 million kl in the next fiscal year through March 2021, with the overseas segment accounting for 60 percent, according to its medium-term business plan. (NNA/Kyodo)

NNA Report