Indonesia, located in Southeast Asia, is the fourth most populous country in the world with a population exceeding 270 million. It is the largest economy in ASEAN and has the largest consumer base in Southeast Asia. The growth of Indonesia's plastic industry has been fueled by the continuous growth of the Indonesian economy.
Indonesia's GDP per capita has been growing, with a compound annual growth rate of 3.9% from 2014 to 2023, reaching US$ 4,914 in 2023, an increase of 2.7% year-over-year. In 2023, Indonesia's real GDP was US$ 1.41 trillion, calculated at constant 2010 market prices, an increase of 5.05% year-over-year, although this was a 0.3% decrease from 2022. Despite a slight slowdown, Indonesia's GDP growth rate remains well above the global rate of 2.6%.
The Indonesian plastic and plastic products industry is gradually recovering. In 2022, Indonesia’s imports of plastics and their products increased by 17.9% year-over-year, reaching US$11.2 billion, making it the 19th largest importer of plastics and their products globally. According to analysis, plastics and their products are the fifth largest import category for Indonesia. Indonesia’s imports of plastics and their products mainly come from China (US$ 3.45 billion), Singapore (US$ 1.26 billion), Thailand (US$ 1.24 billion), South Korea (US$ 1 billion), and Malaysia (US $960 million).
In terms of exports, Indonesia’s exports of plastic raw materials and products have been trending upwards. In 2022, exports of plastics and their products amounted to US$ 3.13 billion, making Indonesia the 39th largest exporter of plastics and their products globally, a year-over-year increase of 20.4%. According to analysis, Japan, China, Vietnam, Malaysia, and the United States are the top five export destinations for Indonesian plastic raw materials and products.
Plastics and plastic products in Indonesia are used extensively across various industries including packaging, construction, electronics, and automotive manufacturing. Driven by Indonesia's continued economic development and population growth, the domestic consumer market is expected to continue expanding in the medium to long term. Moreover, as the penetration of e-commerce accelerates in Indonesia, the demand for plastic packaging is expected to remain strong. Additionally, growing demand from end-user industries such as electrical and electronics and the construction sector is expected to drive growth in the Indonesian plastic market.
To control environmental issues caused by disposable plastic products, the Indonesian government has issued a policy to phase out the use of various single-use plastic products by the end of 2029, including polystyrene foam used in food packaging, disposable plastic cutlery, plastic straws, plastic shopping bags, multi-layer packaging films, and small plastic packaging bags.
Despite the Indonesian government's stringent environmental policies, which impose certain restrictions on the use of plastics, the long-term growth potential for the Indonesian plastic industry remains significant. The industry is expected to grow significantly through investments from both FDI and domestic companies, focusing on the development and production of environmentally friendly plastic products to mitigate policy impacts on the Indonesian plastic industry.
The analyst predicts that there are substantial investment opportunities for foreign investors in the Indonesian plastic industry. Imports of plastics and their products are expected to continue growing in the coming years, with imports projected to reach US$ 16.08 billion by 2033, achieving a compound annual growth rate (CAGR) of 3.5% from 2024 to 2033.
Topics covered:
- Overview of the Indonesian Plastic Industry
- Economic and Policy Environment of the Indonesian Plastic Industry
- How Foreign Investment Enters the Indonesian Plastic Industry
- Market Size of the Indonesian Plastic Industry from 2024 to 2033
- Analysis of Major Plastic Industry Manufacturers in Indonesia
- Key Drivers and Market Opportunities for the Indonesian Plastic Industry
- Main Drivers, Challenges, and Opportunities for the Indonesian Plastic Industry during the 2024-2033 Forecast Period
- Who are the key players in the Indonesian plastic industry market, and what are their competitive advantages?
- Expected revenue for the Indonesian Plastic Industry Market during the 2024-2033 forecast period
- What strategies have major players adopted to increase their market share in the industry?
- Which segment of the Indonesian plastic industry market is expected to dominate by 2032?
- Major adverse factors facing the Indonesian plastic industry
Table of Contents
Companies Mentioned
- Asahimas Chemical Company
- BASF SE
- Lotte Chemical Titan Holding Berhad
- LyondellBasell Industries Holdings BV
- PT Chandra Asri Petrochemical
- PT INNAN
- PT Pertamina (Persero)
- PT Polychem Indonesia Tbk
- PT Standard Toyo Polymer (Tosoh Corporation)
- Sulfindo Adiusaha
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 80 |
| Published | May 2024 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 11.8 Billion |
| Forecasted Market Value ( USD | $ 16.08 Billion |
| Compound Annual Growth Rate | 3.5% |
| Regions Covered | Indonesia |
| No. of Companies Mentioned | 10 |
