The Indonesian lubes major is continuing its expansion across the Asia Pacific region.
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Production at the new Pertamina plant. Image: Antara/Agung Rajasa
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After announcing the $114m integrated lube oil blending plant in March last year, Pertamina has now begun production at the 270m litres per year facility.
The plant will also have a grease unit - providing an additional 8,000 metric tons per year - and a viscosity modifier plant with a 14m litres per year capacity.
Pertamina is hoping the new extensions, set to service around 67.5m cars annually, will make the company more competitive both at home and abroad.
Indonesia's Foreign Minister commented that the new plant will make the company more competitive across the ASEAN community, but stressed the company would still need to invest significantly in marketing.
She also called for national standards to help make the state-owned business compete with foreign rivals on a level playing field.
The amibitious producer will be focusing on its operations in Thailand, Cambodia, Vietnam, Myanmar, South Africa, Malaysia and Singapore, using Thailand as its regional hub.
A subsidiary of the energy firm has also announced plans to open a lubricants plant in China in 2017 that would likely have an annual output of around 100,000 litres of lubes annually.
President Director Gigih Wahyu Hari Irianto plans to export 15,000 litres of lubes in 2016, up from 10,000 litres this year, and hopes to increase domestic sales to 450,000 litres from 435,000 litres this year.