The Netherlands-based lubricant firm, Royal Dutch Shell, planned to build a 120,000-ton lubricant plant in Indonesia, which is claimed to become the country's largest of its kind operated by a foreign firm, a company statement said here on Friday.

"Construction of the plant will begin in the next few months after the tender is concluded," Shell Global Commercial Executive Vice President Mark Gainsborough said in the statement.

Indonesia has tremendous growth potential in the lubricant market and Shell would work to "make us close to consumers here," he said, adding that the plant will produce lubricants for transportation, industry and ships.

To comply with the significant demand for lubricants in Indonesia, the largest economy in Southeast Asia, Shell imports lubricant from its plants in Malaysia and Singapore.

Shell Indonesia Country Chairman Darwin Silalahi said that the plan to construct a lubricant plant in Indonesia has proved the confidence of Shell in the country's market.

The plant, to be located in Marunda, North Jakarta, would be 100 percent controlled by Shell, equipped with world's class latest technology and production facilities, he said, adding that tight quality control system will be applied.

Besides Singapore and Malaysia, Shell also operates its Asian lubricant plants in Thailand, Vietnam, South Korea, Pakistan and India.

Indonesia has witnessed positive growth over the last few years. Its growth this is expected to be 6.5 percent, which is forecast to reach 6.8 percent next year. Endi