Pertamina is planning to build two lubricant factories in Jakarta.
The company will invest Rp1.3 trillion ($114m) in a grease plant and a lube-oil blending plant in Tanjung Priok (North Jakarta adding to its two existing blending plants in Cilacap, Central Java, and Surabaya, East Java.
Construction of the Rp500bn grease factory is planned to begin in June 2015 and will have a capacity of 8,000 metric tons per year.
Work has already commenced on the lube-oil blending plant which is expected to be completed by December 2014, taking overall annual capacity in the region to 600,000 tons.
Growing demand for vehicles
The investment is in response to growing automotive demand and is part of a continued programme of growth announced by the Indonesian lubes producer at the beginning of last year. Its home country has seen an increase of 9% in vehicles sold since last year, according to the Association of Indonesian Automotive Manufacturers (Gaikindo) which has reported a total of 1.2 million vehicles sold nationally.