Shell's Grease Plant in Marunda Begins Operations, Targets Domestic Industrial Demand
Shell Indonesia has begun producing grease at its new manufacturing facility in Marunda, Bekasi, West Java. The plant, inaugurated on Tuesday (15 September 2026), has a production capacity of up to 12 kilotonnes per year and is, for the time being, intended to meet domestic market demand.
The Grease Manufacturing Plant (GMP) is located within the complex of Shell’s Lubricants Oil Blending Plant (LOBP) in Marunda. Construction began in 2024, and it is Shell’s first grease production facility in Indonesia.
The new facility complements Shell’s lubricants production capabilities in Marunda, which had previously produced various types of lubricants for industrial needs. Following an expansion completed in November 2022, the Marunda LOBP has a capacity of up to 300 million litres of lubricants per year.
Minister of Industry Agus Gumiwang Kartasasmita said the facility could strengthen Indonesia’s manufacturing base, particularly because its products are used by several industrial sectors such as manufacturing, mining, and transport.
“We welcome the inauguration of Shell’s Grease Manufacturing Plant in Indonesia as part of efforts to strengthen Indonesia’s manufacturing base,” Agus said at the plant’s inauguration.
According to Agus, the development of manufacturing facilities also has the potential to expand Indonesia’s role in the regional supply chain. He expressed hope that production in Marunda would not only meet domestic needs but could, at a later stage, be directed towards regional and international markets.
The plant employs a number of technologies in its production process, including a contact reactor. The production system is also equipped with automation and a Safety Instrumented System used to support safety and process consistency.
The products manufactured are greases under the Shell Gadus brand. These are used in various industrial applications, including bearings and gears. The Marunda facility produces them in a number of packaging formats, such as drums, pails, and fluid bags.
Shell said production in Marunda is currently focused on the needs of the Indonesian market. Distribution is carried out through its existing supply chain and distribution network, including distributors, channel partners, and direct customer relationships.
President Director & Managing Director of Lubricants at Shell Indonesia, Andri Pratiwa, said increasing industrial activity in Indonesia has driven demand for lubrication products. With the new plant in operation, Shell now has manufacturing facilities in Indonesia covering both lubricants and grease production, with a larger total capacity.