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Nynas on the offensive in Indonesia

Despite the financial turbulence in the world, major investments are being planned in Indonesia in areas such as power generation, electrical development and the automotive and tyre industry.

Nynas has been selling transformer oils in the Indonesian market since the late 1990s, initially from its Hong Kong office. A depot was opened in 1998, and ten years later a sales office opened for business in the capital city of Jakarta. The product portfolio has grown throughout the years and now includes tyre oils and lubricating oils, as well as specialty oils for the chemical industry.

All forecasts indicate continued growth, with a number of new investments being planned in the country. This is true not least of all in the rapidly expanding automotive industry. In 2012, 900,000 cars and eight million motorcycles were manufactured, an increase of 15% compared to the year before. This has created a domino effect in several other markets.

In recent years significant efforts have been made to improve the business climate and the legal processes in Indonesia – efforts that now are starting to have a positive effect. Another evident trend nowadays is also that more and more companies are interested in quality and reliability, especially those that export their products. It is simply a requirement to be successful in the regional and global export market.

Indonesia is taking big steps towards becoming a competitive export country with high-quality products. One challenge still remaining in a country of about 13,000 islands is transport. This means that advanced logistics and planning are often required, something to which Nynas is paying special attention.

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