Shell Indonesia Grease Factory Officially Begins Operations with 12 Million Litre Annual Capacity
Shell Indonesia has officially commenced operations at its Grease Manufacturing Plant. The manufacturing facility, which has been under construction since mid-2025, is regarded as a strategic move to strengthen the domestic supply chain and enhance the competitiveness of Indonesian industry.
The inauguration of the Shell Indonesia grease factory took place in Jakarta on Monday (15/0/2026) and was attended by the Deputy Minister of Trade, Dyah Roro Esti Widya Putri. The government believes that the presence of this manufacturing facility is closely linked to efforts to integrate investment, industry, and trade to build a more resilient national industrial ecosystem.
With a production capacity of approximately 12 million litres per year, the Shell Indonesia grease factory is one of the significant grease plants for Shell Global and has the potential to position Indonesia as a service hub for the regional market.
Deputy Minister Roro stated that Shell’s investment reflects investor confidence in Indonesia’s long-term economic prospects. She noted that the development of modern manufacturing facilities is not only about increasing production capacity but also plays a strategic role in strengthening the domestic industrial base.
From the perspective of the Ministry of Trade, the existence of the Shell grease factory can contribute to strengthening domestic supply, increasing industrial efficiency, and ensuring product availability for various industrial sectors in Indonesia.
One of the significant impacts of the Shell grease factory’s operation is the increase in the supply of products manufactured domestically. The President Director and Country Chair of Shell Indonesia, Andri Pratiwa, revealed that with the operation of this latest facility, the supply of domestically produced grease has increased from 90 per cent to more than 98 per cent.
This increase in domestic production is a vital part of strengthening the industrial supply chain. The government views this step not merely as import substitution, but as an opportunity to build a more competitive and sustainable national manufacturing ecosystem. As more industrial needs can be met through domestic production, the supply chain is expected to become more efficient and possess better resilience in facing global trade dynamics.
Shell’s investment is also considered aligned with the government’s agenda to encourage downstreaming and the development of national industry. The Ministry of Trade noted that Indonesia’s investment realisation in the first half of 2026 reached Rp1,010.6 trillion, growing 7.2 per cent annually and absorbing more than 1.4 million workers.
In this context, investment in the manufacturing sector holds a vital position as it generates economic activity, strengthens domestic production capacity, and creates value-added within the country. Deputy Minister Roro assessed that a strong domestic market requires a reliable supply, competitive products, and a resilient industrial ecosystem. Therefore, the presence of Shell’s manufacturing facility in Indonesia is seen as directly linked to the agenda of securing the domestic market.
In addition to production and supply chain aspects, the operation of the Shell grease factory also impacts the development of Indonesian human resources. Andri Pratiwa revealed that the facility is 100 per cent powered by local Indonesian workers.
The government hopes that the presence of this high-tech facility will not only create jobs but also serve as a space for local talent to enhance their skills and gain experience to international standards. The Deputy Minister emphasised the importance of opportunities for the Indonesian workforce to enter Shell’s global knowledge network and value chain.
Shell’s latest grease factory also strengthens Indonesia’s potential as part of Shell’s production and service network in the regional area. Shell global leader, Machteld de Haan, expressed appreciation for the Indonesian government’s support from the groundbreaking stage to the inauguration of the facility. According to her, an increasingly close and sustainable partnership with the Indonesian government can serve as a foundation for Shell to continue contributing to Indonesia’s economic growth.
For Shell, the development of manufacturing facilities in Indonesia demonstrates how industrial investment can go hand-in-hand with strengthening national production capacity. For the government, such investment is part of the effort to create a business and trade climate that is predictable, competitive, and supportive for both businesses and investors.