Indonesia’s lubricant market shifts towards synthetics by 2028

Indonesia, the world’s fourth-largest lubricant market after China, India, and the United States, is set to witness a shift towards synthetic and semi-synthetic lubricants, with demand projected to reach 26% by 2028.

Speaking at F+L Week 2025 in Bali, Indonesia, Werry Prayogi, president director of PT Pertamina Lubricants, outlined key trends in the local market during his presentation, Indonesia’s Lubricants Market: Growth Trends, Challenges, and Pertamina Lubricants’ Readiness.

Indonesia’s total lubricant demand is expected to rise from 1.19 billion litres to 1.50 billion litres by 2033, with the market share between consumer automotive, commercial automotive, and industrial segments remaining relatively stable.

Shift towards synthetic lubricants

A key trend in Indonesia’s lubricant market is the increasing demand for synthetic and semi-synthetic oils, which offer superior performance and fuel efficiency. The transition is largely driven by original equipment manufacturers (OEMs), which are increasingly recommending high-performance lubricants with lower viscosity grades to achieve greater fuel efficiency.

Despite this shift, mineral-based oils will continue to play a significant role in price-sensitive segments. “Indonesia’s lack of vehicle age-limit regulations sustains demand for mineral oils, as older vehicles remain in operation,” said Prayogi.

While synthetic oils provide longer machine lifespans and extended oil change intervals, their higher cost means that mineral oils will likely remain dominant in the industrial sector over the next five years. Prayogi noted that cost-effectiveness and reliability continue to drive demand for mineral-based lubricants in industrial applications.

Value-added services driving market growth

Looking ahead, Prayogi highlighted the increasing importance of value-added services in Indonesia’s lubricant sector. These services enhance customer loyalty, allow for premium pricing, and present customised solutions for industries such as mining and construction.

As Indonesia’s lubricant industry evolves, companies are expected to focus on sustainability, advanced formulations, and customer-centric solutions to remain competitive in this dynamic market.