Shell Lubricants Strengthen Production in Indonesia
The lubricant industry plays a vital role in supporting various activities within the manufacturing sector. The Indonesian Ministry of Industry (Kemenperin) continues to strengthen the domestic lubricant product industry by reinforcing its manufacturing base. This is reflected in the influx of manufacturing investment through the construction of new production capacities, which simultaneously creates opportunities for increased value addition, the utilisation of supporting industries, and import substitution.
“For the Government, this investment is important because it introduces new manufacturing capacity and technology, while simultaneously strengthening links with supporting industries within the country,” said the Indonesian Minister of Industry, Agus G. Kartressasmita, during the inauguration of the Shell Grease Manufacturing Plant in Marunda, Bekasi, on Tuesday (15/09/2026).
In an official statement, the Minister noted that the strengthening of the manufacturing base aligns with the positive performance of the national non-oil and gas processing industry (IPNM). In the second quarter of 2026, the IPNM grew by 5.32 per cent year-on-year, higher than the national economic growth of 5.29 per cent. The IPNM also provided the largest contribution to growth, amounting to 0.97 percentage points.
The Minister stated that the national manufacturing performance is inseparable from the contribution and confidence of industry players who continue to strengthen their production activities in Indonesia. One such example is Shell, which has demonstrated its commitment through the strengthening of its manufacturing base in Marunda.
Following the development of the Lubricants Oil Blending Plant (LOBP) in 2022, Shell’s lubricant production capacity in Marunda reached up to 300 million litres per year. The introduction of the GMP subsequently complements this facility with a grease production capacity of 12,000 tonnes per year.
“With this capacity, based on Shell’s data, GMP Marunda is among the top three Shell grease facilities globally. This shows that Indonesia holds an important position in the development of Shell’s manufacturing activities,” he said.
The operation of GMP Marunda is also significant for meeting the demand for grease products in the domestic market. In 2025, Indonesia’s imports of grease products (HS code 27101944) were recorded at approximately 22,377 tonnes. Of that amount, imports of Shell grease products under the Shell Gadus brand reached approximately 11,757 tonnes.
With the operation of GMP Marunda, Shell Gadus products that were previously supplied from abroad can now be produced in Indonesia. This production capacity is expected to further strengthen the fulfilment of grease needs from domestic production, while simultaneously creating space for import substitution and value addition in Indonesia.
Beyond production capacity, the Minister of Industry believes that the link between investment and national industry is a crucial aspect of strengthening the manufacturing ecosystem. Currently, Shell involves more than 50 domestic vendors, with procurement values amounting to approximately Rp30 billion per year.
“The involvement of domestic vendors serves as a good foundation for building an increasingly strong domestic supply chain ecosystem. Moving forward, local sourcing can continue to be expanded, particularly for raw materials, packaging, and industrial services, so that the benefits of investment can be felt more widely through the growth of supporting industries and economic activities throughout the supply chain,” said Minister Agus Kartasasmita.
The Minister also appreciated the implementation of modern manufacturing technology and automated processes at GMP Marunda. These implementations aim to increase productivity, maintain quality consistency, and strengthen the competitiveness of manufacturing activities.
Regarding sustainability, the Marunda LOBP area has implemented the use of solar panels, an energy monitoring system, and rainwater harvesting. The solar panels used generate approximately 1.1 million kWh per year, meeting about 17 per cent of the electricity needs in the LOBP area.
“The commitment to modern, productive, and resource-efficient manufacturing, while paying attention to environmental and occupational safety aspects, is in line with the direction of national industrial development, which is becoming greener, more efficient, safe, and sustainable,” said the Minister.
Furthermore, the Minister expressed hope that GMP Marunda would not only meet domestic market needs but also develop into one of Shell’s grease production bases for the region. Given Indonesia’s strategic position, large manufacturing base, and strong domestic market, the facility has the opportunity to serve regional and global markets.
“We start in Indonesia, strengthen Indonesia, and when the time comes, bring products made in Indonesia to regional and global markets. We want more products made in Indonesia to be able to enter and play a role in the global supply chain,” he said.
The Minister also commended Shell’s social and environmental programmes, such as the Desa BERSEMI Programme, which has been running since 2016 and has directly benefited more than 230 households around the area. The programme develops circular economy practices and integrated waste management by processing waste into economically valuable resources.
“This is a good practice that should continue to be developed, because industrial progress must go hand in hand with social and environmental responsibility,” the Minister emphasised.
With the operation of GMP Marunda, the Minister of Industry hopes that the facility will continue to grow into a productive, competitive, safe, and sustainable manufacturing activity, while further strengthening its links with national industry and providing greater value addition to the Indonesian economy.