Indonesia Industrial and Automotive Lubricant Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

The Indonesia industrial and automotive lubricant market size reached around USD 795.40 Million in 2024. The market is projected to grow at a CAGR of 5.40% between 2025 and 2034 to reach nearly USD 1.34 billion by 2034. The market growth can be attributed to the rapid industrialisation and economic growth of Indonesia, apart from the rising demand for passenger and commercial vehicles.

Indonesia Industrial and Automotive Lubricant Market Report Summary

Market Size 2024

• USD
• 795.40

Market Size 2034

• USD
• 1345.83
• CAGR 2025-2034
• 5.40%

CAGR 2025-2034 - Market by By Product Type

• Engine Oil
• 6.2%

CAGR 2025-2034 - Market by By Application

• Two-Wheeler
• 6.1%

Indonesia Industrial and Automotive Lubricant Market Growth

As per the industry analysis, Indonesian consumers prefer purchasing lubricants from eco-conscious brands that preserve natural resources and promote habitat protection. This has prompted companies to switch towards producing biodegradable lubricants that reduce the risk of environmental damage due to accidental spills and releases. This is one of the key Indonesia industrial and automotive lubricant market trends. Biodegradable lubricants are derived from vegetable oils or synthetic, non-toxic materials that decompose easily in soil and water. They also enable lubricant manufacturers to ensure compliance with environmental regulations and deliver on consumer expectations.

Technological advancements in lubricant production can potentially reduce carbon emissions and enable automotive rental companies to save on fleet maintenance costs. This is favourably shaping the Indonesia industrial and automotive lubricant market dynamics. Moreover, with the expansion of Indonesia’s logistics industry (from IDR 689 trillion to over IDR 1.2 quadrillion of GDP contribution during 2020-23), the demand for sustainably packaged lubricants is expected to increase steadily. According to industry reports, packaging made from natural polymers is expected to require 35% less energy as compared to solutions derived from petroleum-based polymers. This is creating a favourable Indonesia industrial and automotive lubricant market outlook.

Key Trends and Developments

Increasing automotive production; the emergence of Industry 4.0; the expansion of the construction industry; and the growing switch to premium lubricants are the major factors driving the Indonesia industrial and automotive lubricant market growth.

July 2024

Chevron Oil Products Indonesia appointed PT Berkat Oase Semesta (PT BOS), a subsidiary of POSX Group, as the official distributor of its lubricants. This is expected to favourably impact the growth of the oil and gas industry and power generation sector and strengthen the company’s supply chain management capabilities.

March 2024

Shell Indonesia announced its decision to construct a grease manufacturing plant (GMP) at its existing facility of Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, Indonesia. Post-completion, it is expected to become Shell’s third largest GMP facility, with an annual production capacity of 12 kilotons. This is creating a favourable Indonesia industrial and automotive lubricant market outlook.

May 2023

PT Pertamina Lubricants, a subsidiary of Pertamina's Commercial & Trading Subholding, inaugurated the Lubricants Technology Center (LTC) at Plumpang, North Jakarta. It is renowned as Indonesia’s largest innovation and lubricant research centre and is equipped with modern facilities to meet the lubricant demands in countries like Thailand and Australia.

November 2022

Shell Indonesia upgraded its Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi to ensure sustained production of Shell Helix, Shell Advance, Shell Spirax and other premium-grade lubricants. By introducing high-speed filling lines and cutting-edge blending equipment, the company aims to substantially expand its production capacity.

Increasing automotive production

As per the Association of Indonesia Automotive Industries, over 800,000 new ICE and battery-powered vehicles were sold in Indonesia in 2021. Moreover, the Indonesian Motorbike Association suggests that Indonesian consumers purchased over 5 million new motorcycles during that period. This is expected to contribute to Indonesia industrial and automotive lubricant market development in the coming years.

Emergence of Industry 4.0

Industry 4.0 is expected to revolutionise how companies produce, improve, and distribute their lubricants across Indonesia. The process of selecting and evaluating final products has become increasingly digitised, end users are relying on data measurement systems to understand lubricant performance and make informed decisions. This is contributing to the Indonesia industrial and automotive lubricant market development.

Expansion of the construction industry

The construction sector is the fourth largest industry in Indonesia’s economy. In Q1 of FY-2024, it accounted for nearly 10.23% of the national GDP. The rising sales of heavy construction machinery and drilling equipment are expected to increase the demand for high-performance lubricants to ensure the longevity of products and maximise the ROI on a company’s capital expenditure.

Switch to premium lubricants

Indonesia-based automotive companies are seeking premium lubricants with superior film strength, oxidative stability, low viscosity index, foam suppression capabilities, and excellent moisture-handling ability. This is imperative for reducing machine loss and enhancing the fuel efficiency of automobiles.

Indonesia Industrial and Automotive Lubricant Market Trends

Expansion of construction industry

The expansion of Indonesia’s construction industry is driving the demand for low-viscosity lubricants that considerably reduce the generation of heat and friction. A typical heavy construction machinery loses nearly 80% of its energy during operation, with only 20% of it getting transformed into useful mechanical work. This has prompted companies to switch to premium lubricants, which reduce energy losses by 0.5% per component, thereby incurring huge cost savings. This is expected to increase the Indonesia industrial and automotive lubricant market revenue in the coming years.

Emergence of Industry 4.0

Indonesia’s manufacturing industry accounts for nearly 18% of its GDP. Based on industry reports, rapid digitalisation of operations is expected to contribute a value of USD 120 billion to Indonesia’s economy by the end of 2025. With the increasing use of industrial robots across the automotive, consumer electronics, and food processing industries, the demand for premium lubricants is expected to surge rapidly, thereby leading to the Indonesia industrial and automotive lubricant market expansion.

Indonesia Industrial and Automotive Lubricant Industry Segmentation

The report titled “Indonesia Industrial and Automotive Lubricant Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Product Type

• Metal Working Fluid
• Engine Oil
• Gear Oil
• Hydraulic Oil
• Marine Oil
• Others

Breakup by Type

• Mineral
• Semi-Synthetic
• Fully-Synthetic
• Others

Breakup by Engine Type

• Petrol
• Diesel
• Alternative Fuel

Breakup by Sales Channel

• OEM
• Aftermarket

Breakup by Application

• Passenger and Commercial Vehicle
• Oil and Gas
• Construction and Mining
• Two-Wheeler
• Others

Indonesia Industrial and Automotive Lubricant Market Share

Based on application, the market is segmented into passenger and commercial vehicle, oil and gas, construction and mining, and two-wheeler, among others. Over the forecast period of 2025-2034, the application of industrial and automotive lubricants in two-wheelers and passenger and commercial vehicles is expected to grow at a CAGR of 6.1% and 5.8% respectively, as MNCs expand their network of aftersales service centres across the region.

Based on product type, the market is segmented into metal working fluid, engine oil, gear oil, hydraulic oil, and marine oil, among others. Over the forecast period of 2025-2034, the demand for engine oils and gear oils is expected to grow at a CAGR of 6.2% and 5.8% respectively, due to technological advancements and rapid industrial growth.

CAGR 2025-2034 - Market by

• By Product Type
• Engine Oil
• 6.2%
• Gear Oil
• 5.8%
• Metal Working Fluid
• Hydraulic Oil
• Others

Leading Companies in the Indonesia Industrial and Automotive Lubricant Market

Major market players are investing in advanced lubricant formulations to enhance engine efficiency and equipment performance. They are expanding their distribution networks to reach remote areas and focusing on eco-friendly and synthetic lubricant products to align with environmental regulations. Additionally, partnerships with automotive and industrial manufacturers are expected to strengthen their market presence, thereby bolstering the Indonesia industrial and automotive lubricant market development.

The Lubrizol Corporation

The Lubrizol Corporation was founded in 1928 and is headquartered in Ohio, United States. It is a speciality chemicals company that produces engineered polymers and performance costings (among other products) across its 100 production facilities worldwide.

Chevron Oronite

Chevron Oronite was founded in 1917 and is headquartered in California, United States. It is a world-class developer, producer, and marketer of fuel additives and lubricants designed to enhance the performance of industrial equipment and passenger and commercial vehicles.

Infineum International Limited

Infineum International Limited was founded in 1999 and is headquartered in Oxfordshire, England. It is a joint venture company of ExxonMobil and Shell and specialises in formulating petroleum additives for producing lubricants.