Govt Supports the Commencement of Shell’s Grease Plant Operations in Indonesia

RRI.CO.ID, Jakarta – Indonesia officially strengthens its domestic industrial ecosystem and economic resilience as the government welcomes the operational launch of Shell Indonesia's new grease manufacturing plant in Jakarta on Tuesday, September 15, 2026. This high-value manufacturing facility aims to boost national production capacity and position the country as a strategic hub for regional markets.

Indonesia's Vice Minister of Trade, Dyah Roro Esti Widya Putri, stated that the inauguration of Shell Indonesia’s Grease Manufacturing Plant serves as an important catalyst for promoting national economic growth and realizing a more resilient industrial ecosystem. The presence of this strategically valuable manufacturing facility has a very close direct correlation with the Ministry of Trade's focus, which is to create a strong integration between investment, industry, and trade.

This matter emerged during the remarks delivered by Roro at the inauguration of Shell Indonesia's grease or semi-solid lubricant plant held at the Intercontinental Hotel, Jakarta, on Tuesday, September 15, 2026. “Today's inauguration is much more meaningful than just the opening of a new manufacturing facility; it represents a shared commitment to strengthening Indonesia's industrial ecosystem, creating quality jobs, and building a more resilient and competitive economy,” she explained.

According to her, Shell's investment, which began construction in mid-2025, reflects investor confidence in Indonesia's long-term economic prospects. With a production capacity reaching approximately 12 million liters per year, this facility is projected to meet domestic market needs while expanding regional export reach.

From the perspective of the Ministry of Trade, this investment plays a crucial role in facing today's competitive global market dynamics. “To maintain a healthy and resilient trade balance, we need not only strong exports, but also a more competitive domestic industrial base. The presence of modern manufacturing facilities like Shell's will directly contribute to strengthening domestic supply, increasing industrial efficiency, and guaranteeing product availability for various industrial sectors in Indonesia,” Roro explained.

This strategic step is also aligned with the government's priority agenda in promoting industrial downstreaming and securing sustainable domestic raw material supplies. Through the full operation of local workers and a surge in domestically made supplies, this investment provides a dual positive impact on employment absorption and the independence of the national manufacturing sector.

The government reaffirmed its commitment to continuously maintaining a conducive investment climate so that strategic cooperation with global business actors like Shell can continue to develop sustainably. This close collaboration between the public and private sectors is believed to be capable of bringing Indonesia further and more strongly connected into the global supply chain.