Sinopec looks to strengthen market share in East and Central Java

The industrial lubricant market in Indonesia is considered to be quite lucrative, including both its manufacturing and logistics elements. Seeing the opportunity, China Petroleum & Chemical Corporation (Sinopec Group), a leading energy company from China, looks to strengthen its market share in the provinces of East Java and Central Java, two provinces with significant industry and incoming investments.

Chandra Liman, a director of Sinopec Group lubricants distributor for East and Central Java PT Limanindo Kawan Sejati (PT LKS), stated that Sinopec has earned the trust of several industries in the country since entering the Indonesian market in 2022.

"Especially in East Java, Sinopec has been trusted by several sugar factories, power plants, plantations, and automotive [factories]. We are grateful for sales in East Java surging significantly by around 70 percent year-on-year (yoy) in 2024," he said on the sidelines of the Sinopec Customer Gathering event in Surabaya City, East Java Province on Feb. 5, 2025.

Chandra said that the increase in sales was driven by the quality of Sonopec products, which are able to support the performance of industrial machines, as well as cost efficiency because of their affordable prices.

"Sinopec lubricants are produced with high-quality raw materials and have various advantages, such as longer lubricant life, maintained viscosity, and high oxidation resistance, so that they can improve engine performance. They are even trusted for extreme high and low temperature lubrication," he explained.

Chandra added that in addition to continuing to expand market penetration both regionally and in the manufacturing sector for 2025, PT LKS also continues to educate the market about how lubricants for diesel engines must be adjusted in line with the development of B40, a 40-percent fatty acid methyl esters biodiesel product that the government is promoting.

"Sinopec has products that already meet the [B40] standard. Moreover, there are also many new industries in Central Java that certainly need good lubricants, especially for injection engines, so that they are [both] more efficient and have improved performance," he elaborated.

In addition, the large potential of the logistics market will also be Sinopec Group's focus, especially to support engine oil for truck fleets.

Some of Sinopec's lubricant products currently marketed in Indonesia include Sinopec Tulux T500 15W40 Classic Diesel Engine Oil, Sinopec L-Ckd Heavy Duty Industrial Gear Oil, Sinopec Marine Trunk Piston Engine Oil 4012, and Sinopec L-Hm 46 Hydraulic Oil.

Globally, Sinopec Group's business includes oil and gas exploration, refining, and marketing, production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products, storage and pipeline transportation of crude oil and natural gas, import agency business, as well as export and import of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.