"Currently there are more than 20 factories lubricant or Lube Oil Blending Plant (LOBP) in Indonesia, but there is over capacity," said Industry Minister Saleh Husin in Jakarta on Tuesday.
Minister of Industry said, it has become one of the challenges faced by the domestic industry lubricants.
In addition, added Minister of Industry, industrial lubricants also got another challenge with the lubricant product imports increased 50 percent in four years to 300 thousand kiloliters in 2013 from 200 thousand kiloliters in 2010.
Menperin convey, raw materials and lubricant additives industry in the country is still largely imported, so in Indonesia, the industry is still limited to the formulation and mixing (compounding).
"Therefore, the need for integrated supply chain between the upstream (upstream) and downstream (downstream) or between the raw material in the form of lube base oil lubricant products," said Minister of Industry.
With the presence of Shell lubricants factory in Industrial Area Marunda Center which will start operations in mid-2015, the Minister of Industry said, lubricants imports predicted to be reduced.
"With them (Shell) to produce lubricants in Indonesia, it could reduce imports," said Minister of Industry.
In addition, added Minister of Industry, the production of lubricants provide more choices to the public on lubricant products, especially in terms of quality. (MFD)
: Mayolus Fajar Dwiyanto
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