Fake lubricants control 15% market

At least 15 percent out of a total of 565,000 metric tons of lubricants consumption in the country are supplied by fake products.

Such fake lubricants are usually produced from used lubricants that are reprocessed and packaged using official branded packaging.

This fake lubricant, of course, is of low quality, and can even cause negative impacts to engines.

The chairman of the Indonesian Lubricant Producers Association (Apelindo), AP Batubara, called on the government to take drastic measures to stop the production and distribution of fake lubricants.

Batubara, who is also vice president of lubricant producer PT Wiraswasta Gemilang Indonesia (WGI), said if fake lubricants continue to flood the market, lubricant companies like WGI would eventually be forced out of the market because they could not compete with fake lubricant products.

Minister of Energy and Mineral Purnomo Yusgiantoro, during his visit to WGI's lubricant refinery plant on Saturday, acknowledged the widespread sales of fake lubricants, but the government was not fully equipped to fight against fake lubricants.

To reduce fake lubricants, Purnomo said the government would give the same opportunities to all national players to enter lubricant industries.

He added at least five local companies had filed licensing proposals to the government to enter the lubricant industry.

Currently only two national companies officially producing lubricants, one is state oil and gas firm Pertamina with its Mesran lubricant, and WGI with Pennzoil and Evalube.

Pertamina's Mesran controls 58 percent of the domestic lubricant market, while WGI's Pennzoil and Evalube takes 12 percent, and the remaining is supplied by imported lubricants.

Batubara noted that domestic lubricant demand would continue to increase by two or three percent next year although political situation would remain bleak. (*)