Sharp competition drives 20 lubricant companies to the brink of bankruptcy.(Industry)

Indonesian Commercial Newsletter, July, 2004

At least 20 of more than 40 lubricant companies in the country are feared to succumb to bankruptcy in the next three years. The country's production of lubricant oils is expected to exceed demand. Large excess in production will cause sharp competition. The 40 lubricant companies have a total capacity of 1.2 million liters a year as against domestic requirement of only 670,000 kiloliters. Two years earlier the country had only 8 producers, but number grew rapidly by 400% to more than 40 at present.

The consumption is not expected to rise significantly in the next few years with the many of consuming industries such as cement, steel and tire industries and transport sector remaining in the doldrums. In the next two or three years consumption is expected to reach...

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