Pertamina penetrates lubricant markets in Europe, Africa

Pertamina Lubricants, a subsidiary of state oil and gas company PT Pertamina, has shipped its first lubricant exports to Switzerland and South Africa, marking its new success of penetrating the lubricant markets in Europe and Africa, after previously managing to enter the Asia Pacific market.

"Switzerland and South Africa are respectively the 23rd and 24th destinations of Pertamina?s lubricant exports.

These first exports have indicated that out lubricant products are already accepted at the global market,?said Ali Mundakir, Pertamina Vice President for Corporate Communication.

The market penetration into Europe, with Switzerland as the gate, is the result of continuing efforts of brand promotions through a number of activities, including through the events of Fastron Euroasia Expedition, World Rally Championship, and the participation of young racer sponsored by Pertamina, Rio Haryanto.

Capitalizing on the current European market condition that had been oriented to products of high quality and affordable prices, Pertamina has partnered with Indonaldini Group of Switzerland in developing its lubricant products that cater to the need of Europe. ?To win the competition in Europe, Switzerland has a number of advantages, including lower custom tax, skilled marketing officers who generally command four languages, namely English, German, Italy, and France, so that they can find it easier to pursue marketing efforts in neighboring countries,? he said.

He said that the European market, especially western Europe, is very potential, as it needs about 5,2 million kiloliter of lubricants per year. Of the total, about 46 percent is needed by automotive, and the rest by industries, marines, and mining.

The lubricant products of Pertamina are those for automotive, with the first exports that had been shipped at 2 containers or 32,000 liters through Genova Port, Italia.

Africa, he said, is also potential with a growth of demand at 2,6 percent per year. Currently, the potential market is at about 1,8 million kilo liter per year. Beside South Africa, other African countries that have bigger markets are Nigeria, Algeria, Morocco, and Egypt.

The South African alone has a total demand of between 300 and 400 million liters per year with a total number of vehicles are at 2,1 millions.

Editing by Benget Besalicto Tnb.