Indonesia’s Lubricants Market Is Heating Up: Here’s What’s Driving Growth in 2024
Why Are Lubricants a Big Deal?
Let’s start with a simple question—what comes to mind when you think about automotive oil or grease? Probably just messy car maintenance, right?
But there’s much more to
lubricants than just oil changes. They’re essential for keeping machinery, vehicles, and engines running smoothly. Without the right lubricants, engines wear out faster, industrial machines break down, and car performance tanks.
In short, lubricants help reduce friction, control temperature, and extend the life of machines. So when we talk about the growth of the
Indonesia lubricants market, we’re really talking about how a developing country is fueling its infrastructure and mobility.
Indonesia: A Quick Peek Under the Hood
Indonesia isn't just famous for its beaches and volcanoes—it’s a manufacturing and automotive powerhouse in Southeast Asia. In fact, it’s the largest economy in the region with a growing middle class, rapid urbanization, and a booming car market.
Here's why lubricants are more in demand than ever:
- Vehicle ownership is rising—More people in Indonesia are buying cars and motorbikes.
- The manufacturing sector is expanding—Factories need heavy-duty oil and grease for machinery.
- Infrastructure projects are increasing—More roads and buildings mean more equipment running, which means more lubricant use.
Long story short, Indonesia is using more machines—and these machines need lubrication.
Current Size of the Market and Growth Forecast
According to a recent report by Mordor Intelligence, Indonesia’s lubricants market was valued at
around 930 million liters in 2023. This number is expected to cross
1.09 billion liters by 2028. That’s a steady growth rate of approximately
3.4% per year.
Let’s look at a quick table to summarize:
| Year |
Total Lubricant Market Size (Liters) |
| 2023 |
930 million |
| 2028 (Forecast) |
1.09 billion |
So what’s behind this growth?
What's Fueling the Rise of Indonesia’s Lubricants Market?
Let’s break it down:
1. More Cars, More Maintenance
Indonesia's car industry is booming. As more people move into cities and earn better wages, they’re buying motorbikes and cars. With more vehicles on the road, the need for lubricants—especially engine oils—rises sharply.
Consider this: There are over
150 million registered motorbikes and cars in Indonesia. And each of those needs regular oil changes and servicing. No oil, no engine.
2. Big Push in Manufacturing
Indonesia is putting serious money into its industrial zones. Factories involved in everything from food to textiles rely on heavy-duty machines. These gears, belts, and engines run nonstop—and they need consistent lubrication to avoid downtime.
And when machines break down, that’s money lost. So it makes sense that smart factory owners are investing more in high-quality lubricants to keep things running smoothly.
3. Construction Is in Overdrive
New airports. Highways. Rail lines. These aren’t dreams—they're plans already being executed.
Take Jakarta’s MRT system and the new Nusantara capital project, for instance. Behind them are fleets of bulldozers, excavators, and cranes—all of which need to be lubricated properly. One breakdown could delay an entire section of a highway.
Each infrastructure project ramps up demand for industrial lubricants, like hydraulic fluids and gear oils.
Different Types of Lubricants in Demand
Not all greases are created equal. Each one has a different role in keeping machines or vehicles going. Here's a rundown of where the demand is coming from:
- Engine oils – Biggest segment. Needed for all types of vehicles.
- Hydraulic fluids – Important for construction equipment.
- Gear oils – Used in both vehicles and industrial machinery.
- Compressor oils & grease – Niche, but growing fast in industrial settings.
Among these,
automotive lubricants still steal the spotlight, taking up a good chunk of the market share.
What About Electric Vehicles?
Good question.
Indonesia, like the rest of the world, is pushing for more
electric vehicles (EVs). But EVs don’t need traditional engine oils since they don’t have internal combustion engines.
So will EVs kill off the lubricant market? Not so fast.
EVs still need:
- Coolants for battery systems
- Greases for bearings and joints
- Special fluids for transmissions
In fact, companies have started developing
EV-specific lubricants. So while the auto market will change, it won’t disappear—it’ll just evolve.
Who Are the Key Players in This Market?
You probably know some of the big names already. Here's who’s leading the Indonesia lubricants scene:
- PT Pertamina – Indonesia's own major oil company. Big in automotive and industrial lubricants.
- Shell – Strong presence, especially in high-performance oils.
- ExxonMobil – Focuses on industrial and commercial use.
- Chevron – Known for its Havoline brand in the car segment.
All of them are fiercely competing—not only on price but also on product performance and eco-friendliness.
Is Sustainability Changing the Game?
Yes, and it's not just a buzzword anymore.
More companies—especially multinationals—are asking for
eco-friendly lubricants. These are products that are
biodegradable and less toxic to the environment.
Sectors like mining, construction, and marine are slowly making the shift. In the future, we might see stricter regulations in Indonesia too, which will drive this trend further.
Challenges Still Lie Ahead
Of course, it’s not all smooth sailing. The lubricants industry faces some bumps too:
- Inflation and fluctuating oil prices – These affect production costs.
- Competition from low-cost brands – Many small players are flooding the market.
- Lack of awareness in rural areas – Many users still prefer quantity over quality.
But the signs are clear. As Indonesia continues to grow economically, lubricant demand will only climb.
Final Thoughts: What Does the Future Look Like?
To sum it up: Indonesia’s lubricants market is revving up, and it’s not hitting the brakes anytime soon.
The strong combo of rising automobile sales, booming infrastructure projects, and growing industrial output means more engines, more machines—and more lubricant use.
Yes, electric vehicles and sustainability will change the game. But instead of killing demand, they’ll shift it in a new direction. It’s not the end of the lubricant story—it’s just a new chapter.
So, if you're a business owner, investor, or just someone curious about where Indonesia’s economy is heading—keep your eye on this overlooked but powerful market.
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Indonesia’s story isn’t just about building roads and cars—it’s about keeping them running. And in that story, lubricants play a vital role. Keep watching this space.
