Pertamina Lubricants Thailand Co., Ltd. (PLT) has signed a cooperation contract with Iyara Energy Group Thailand (IEGT) on March 5, 2021. PLT is a subsidiary of Pertamina Lubricants from Indonesia. The event was held at the Indonesian Embassy in Bangkok. Rachmat Budiman, Ambassador of the Republic of Indonesia to Thailand’s Kingdom, witnessed the event.
Darwin Harianja, President Director of PLT and Ms Sasithorn Nontleeraksa as Chairperson of IEGT, signed the contract. Mr Harianja is also one of the Indonesia Thailand Chamber of Commerce (INTCC) directors.
The agreement is the 4th distribution cooperation of PLT. This agreement marks the efforts of Pertamina to expand PLT operation in Thailand. As a local partner of PLT and distributor, IEGT will focus on distributing retail products of two-wheeled vehicle lubricants.
“The signing of this cooperation is the first step towards the two countries’ economic recovery in 2021,” said Rachmat Budiman.
PLT and IEGT target the next three years sales of 271-kilo litre per month. Similarly, this amount is roughly equivalent to 30 million baht per month.
Pertamina entered Thailand five years ago
Since Pertamina’s presence in Thailand five years ago, PLT has had three distributors in Thailand with different focus segment. In conclusion, analysts say Thailand’s market acceptance of Indonesian products is quite good. Evidence points to sales growth even in unfavourable situations in 2020 during the pandemic.
PLT cooperation with local partners is in line with Pertamina’s growth policy in the International market. Pertamina’s approach has always been balancing its global integration with local responsiveness. Analysts say Pertamina is expecting this partnership to increase local responsiveness to the company’s products in Thailand. Above all, it can contribute positively to the economic growth of Indonesia and Thailand.
Since early 2020 the company has communicated its intention to become its exclusive distributor for Thailand’s territory.