Indonesia is the powerhouse of Southeast Asia, representing about 40% of both the economy and the population of ASEAN. This significant share highlights on Indonesia’s crucial role in driving regional growth and influence.
According to GWresearch, the Indonesia lubricant market was valued at approximately USD 1.8 billion in 2020. This sector is projected to experience steady growth, with a projected Compound Annual Growth Rate (CAGR) of 4.9% from 2020 to 2025. This growth is driven by expanding industrial activities, rising vehicle ownership, and the need for advanced lubrication solutions in various sectors. As a result, the lubricant market in Indonesia is set for further growth, underscoring its importance within the broader economic landscape.
Indonesia’s automotive lubricant industry has the largest segment in motorcycle lubricants due to the high number of motorcycles on the road. Given Indonesia’s extensive motorcycle fleet, it’s reasonable that lubricants for these vehicles would represent a substantial portion of the country’s lubricant consumption.
As the demand of vehicles increases, so does the need for lubricants. According to Mordor Intelligence Research & Advisory, Indonesia lubricants market is projected to grow from 1.02 billion liters in 2024 to approximately 1.10 billion liters by 2026. This growth indicates a Compound Annual Growth Rate (CAGR) of 3.85% during the forecast period.