Shell Indonesia has begun production at a new grease manufacturing plant in Indonesia, expanding the company’s local manufacturing capabilities as demand from the country’s industrial and transportation sectors continues to grow.

 

The Grease Manufacturing Plant (GMP), officially inaugurated in Jakarta on Tuesday, has an annual production capacity of up to 12 kilotonnes. The facility complements Shell’s existing Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi and is one of the company’s largest grease manufacturing plants globally.

 

Jason Wong, Global Executive Vice President of Shell Lubricants, said: "The inauguration of Shell's Grease Manufacturing Plant in Indonesia reflects our continued confidence in the country's growth potential and our commitment to supporting its industrial development. By strengthening our local manufacturing capabilities, we are enhancing supply resilience and bringing our products and expertise closer to customers.

 

"This investment also reinforces our long-term commitment to creating value for our customers, partners, and Indonesia's broader economic development."

 

The new plant is designed to strengthen Shell’s ability to supply grease products locally while improving manufacturing agility and efficiency. It incorporates technology including a contact reactor and will manufacture Shell Gadus grease products used in applications such as bearings and gears.

 

The facility can produce grease in multiple packaging formats, including drums, pails and fluid bags. Its products are intended for customers across a broad range of industries, including manufacturing, pulp and paper, steel, smelting, power generation, transportation, construction and mining.

 

Agus Gumiwang Kartasasmita, Minister of Industry of the Republic of Indonesia, who attended the inauguration, said: “We welcome the inauguration of Shell’s Grease Manufacturing Plant in Indonesia as part of efforts to strengthen Indonesia’s manufacturing base. 

 

"This investment is expected to support the needs of various industrial sectors, including manufacturing, mining, transportation, and other industrial activities that continue to grow. The Government appreciates investments that generate high-value products and have strong linkages with national industries, thereby creating multiplier effects for the national economy. Enhancing the competitiveness of the lubricants industry can help position Indonesia as a grease manufacturing hub, enabling Indonesian-made products to reach regional and global markets.”

 

The minister also called for the facility to play a larger role in Shell’s regional manufacturing network.

 

“We would like to express our appreciation to Shell Indonesia for its commitment in continuously expanding its manufacturing activities and strengthening its investment in Indonesia. The establishment of the Grease Manufacturing Plant (GMP) in Marunda is not merely the addition of a production facility, but also part of a broader effort to strengthen Indonesia’s manufacturing base.

 

" Looking ahead, we hope that the journey of the Marunda GMP will not stop at meeting domestic market demand. As its production capacity and competitiveness continue to grow, we hope that Indonesia can evolve into part of Shell’s regional production network. We start from Indonesia, strengthen Indonesia, and, in time, bring Indonesian-made products to the region and the world.”

 

The GMP is located within Shell’s existing LOBP complex in Bekasi. Construction of the grease plant began in 2024, and the facility is wholly owned and operated by Shell.

 

The investment builds on Shell Indonesia’s earlier expansion of its lubricants manufacturing operations. In November 2022, the company completed an expansion of its LOBP, doubling its annual production capacity to up to 300 million litres of lubricants from 136 million litres previously.

 

Shell said the latest investment is intended to strengthen supply resilience and bring its manufacturing capabilities closer to customers as Indonesia’s industrial base expands.