Indonesia Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Indonesia Plastics Market is segmented by Product Type (Traditional Plastics(Polyethylene(PE), Polypropylene(PP), Polyvinyl Chloride(PVC), and Polystyrene(PS)), Engineering plastics (Polyethylene Terephthalate (PET), Polybutylene Terephthalate (PBT), Polycarbonates (PC), Styrene Polymer (ABS)/(SAN), Fluoropolymers, Polyoxymethylene (POM), Polymethyl methacrylate (PMMA), Polyamide (PA), and Other Engineering Plastics), and Bioplastics), Technology (Injection Molding, Extrusion Molding, Blow Molding, and Other Technologies), Application (Packaging, Automotive and Transportation, Building and Construction, Electrical and Electronics, Furniture and Bedding, and Applications). The report offers market size and forecasts for the Indonesia Plastics Market in Revenue (USD Million) for all the above segments.

Indonesia Plastics Industry Overview

Indonesia Plastics Market Summary
Study Period: 2017-2027
CAGR: > 6 %

Major Players

Indonesia Plastics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Indonesia Plastics Market Analysis

The Indonesian plastics market is projected to register a CAGR of more than 6% during the forecast period.

COVID-19 negatively impacted the country's production and supply of plastics during the lockdown. However, the demand from the packaging segment surged due to the increasing use of online food and retail e-commerce service during the pandemic. After 2020, the market improved steadily due to continuous activities within the country.

  • Over the medium term, growing demand from the end-user industries, such as packaging, electrical, and electronics, as well as the construction industry, is expected to drive the market’s growth.
  • However, government regulations on the use of plastics and over-reliance on the imports of raw materials are the major factor hindering the growth of the studied market.
  • Rising demand for eco-friendly products is expected to offer various opportunities for the growth of the market.
  • By end-user industry, the packaging segment is projected to register the highest CAGR during the forecast period.

Indonesia Plastics Industry Segments

Plastics are synthetic materials that are produced by various organic polymers. The Indonesia Plastics Market is segmented by product type, technology, and application. By product type, the market is segmented into traditional plastics (polyethylene(PE), polypropylene(PP), polyvinyl chloride(PVC), and polystyrene(PS)), engineering plastics (polyethylene terephthalate (PET), polybutylene terephthalate (PBT), polycarbonates (PC), styrene polymer (ABS)/(SAN), fluoropolymers, polyoxymethylene (POM), polymethyl methacrylate (PMMA), polyamide (PA), and other engineering plastics), and bioplastics. By technology, the market is segmented into injection molding, extrusion molding, blow molding, and other technologies. By application, the market is segmented into packaging, automotive and transportation, building and construction, electrical and electronics, furniture and bedding, and other applications. For each segment, the market sizing and forecasts have been done based on Revenue (USD million).

Type
Traditional Plastics
Polyethylene
Polypropylene
Polyvinyl Chloride
Polystyrene
Engineering Plastics
Polyethylene Terephthalate (PET)
Polybutylene Terephthalate (PBT)
Polycarbonates(PC)
Styrene Polymers (ABS & SAN)
Fluoropolymers
Polyoxymethylene (POM)
Polymethyl Methacrylate (PMMA)
Polyamide (PA)
Other Engineering Plastics (Liquid Crystal Polymer, Polyether Ether Ketone)
Bioplastics
Technology
Injection Molding
Extrusion Molding
Blow Molding
Other Technologies
Application
Packaging
Electrical and Electronics
Building and Construction
Automotive and Transportation
Furniture and Bedding
Other Applications (Houseware)

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Indonesia Plastics Market Trends

This section covers the major market trends shaping the Indonesia Plastics Market according to our research experts:

Growing Demand from the Packaging Industry

  • The primary utilization of plastics is in the packaging segment due to better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength. Furthermore, polyethylene terephthalate (PET) is Indonesia's most common plastic used for packaging purposes.
  • Plastics are more commonly used in the food, retail, and pharmaceutical sector for packaging goods due to their properties such as portability, design flexibility, ease of cleaning, lightweight, and protection against moisture over other materials. In addition, low handling hazards, low toxicity, and the absence of bisphenol A (BPA) and heavy metals are other factors that allow PET to be used for food packaging.
  • In the pharmaceutical industry, plastics are commonly used for packaging blood bags, syringes, nebulizers, and medicine bottles. Furthermore, the growing population in Indonesia is the main reason for pharmaceutical development which has increased the consumption of plastics within the country.
  • In Indonesia the use of plastics is increasing in the e-commerce industry for packaging goods. For instance, According to Agriculture and Agri Food Canada, the sales value of retail e-commerce in Indonesia is valued at approximately USD 37 billion in 2021, which increased as compared to USD 27.72 billion in 2020.
  • According to the United States Department of Agriculture, the retail sales value of packaged foods in Indonesia was approximately USD 33 billion in 2021, up from approximately USD 32.2 billion in 2020. This trend is expected to continue, which shows the growing consumption of plastics in food packaging within the country.
Indonesia Plastics Market - Retail Sales Value of Packaged Foods, in USD billion, Indonesia, 2027-2021

Injection Molding Technology to Dominate the Market

  • In Injection molding technology, the thermoplastic polymer is heated above its melting point and converted into a molten form of low viscosity. This molten plastic is then forced and injected into a mold of the desired shape to get the desired product.
  • Injection molding technology is used to make the shape of simple or complex plastics such as helmets, bottle caps, and fans using thermoplastic polymers. Injection molding technology is also used for wire insulation, bottles, and cosmetics packaging.
  • Injection molding is done using high-quality processing resins. It has several advantages: design flexibility, cost-effectiveness, fast manufacturing process, low labor costs, good color control, and good product quality. In addition, this process is mostly capital consuming, but it offers better and more accurate products than other technology types.
  • The pharmaceutical industry's demand for injection molding is increasing since it is utilized to manufacture various medical equipment parts such as beakers, test tubes, caps, seals, closures, valves, syringes, and inhalers. Furthermore, according to UN Comtrade, Indonesia spent approximately USD 4.4 billion on pharmaceutical imported products in 2021, a rapid increase from approximately USD 1.15 billion in 2020.  This trend demonstrates the future opportunity of injection moulding technology in the pharmaceutical sector.
  • Injection molding is more extensively used in the manufacturing of automotive parts such as door panels, bumpers, grilles, light housings, fender, and other parts. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), Indonesia produced around 1.12 million units of vehicles in 2021, witnessing a growth rate of 63% as compared to the previous year.
Indonesia Plastics Market -Automotive Production, in million units, Indonesia, 2017-2021

Indonesia Plastics Market Competitor Analysis

Indonesia’s plastics market is consolidated. Some major players in the market (not in any particular order) include BASF SE, PT LOTTE CHEMICAL TITAN Tbk, PTT Global Chemical Public Company Limited, PT Polychem Indonesia Tbk, and TORAY INDUSTRIES, INC., among others.

Indonesia Plastics Market Top Players

  1. BASF SE

  2. PT LOTTE CHEMICAL TITAN Tbk

  3. PTT Global Chemical Public Company Limited

  4. PT Polychem Indonesia Tbk

  5. TORAY INDUSTRIES, INC.

*Disclaimer: Major Players sorted in no particular order

Indonesia Plastics Market - Market Concentration.png

Indonesia Plastics Market Recent Developments

  • In November 2022, ExxonMobil and PT Indomobil Prima Energi (IPE) signed a memorandum of understanding (MoU) to explore the potential for the large-scale implementation of advanced plastic recycling technology in Indonesia.
  • In September 2022, Toyobo announced an investment of USD 72 million to open a new polyester film packaging facility at Pt. Trias Toyobo Astria (TTA) in Indonesia.

Indonesia Plastics Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Demand from the End-user Industries

      2. 4.1.2 Rapid Increase in the Downstream Processing Capacity Additions

    2. 4.2 Restraints

      1. 4.2.1 Over-reliance on the Imports of Raw Materials

      2. 4.2.2 Government Regulations on the Use of Plastics

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 Type

      1. 5.1.1 Traditional Plastics

        1. 5.1.1.1 Polyethylene

        2. 5.1.1.2 Polypropylene

        3. 5.1.1.3 Polyvinyl Chloride

        4. 5.1.1.4 Polystyrene

      2. 5.1.2 Engineering Plastics

        1. 5.1.2.1 Polyethylene Terephthalate (PET)

        2. 5.1.2.2 Polybutylene Terephthalate (PBT)

        3. 5.1.2.3 Polycarbonates(PC)

        4. 5.1.2.4 Styrene Polymers (ABS & SAN)

        5. 5.1.2.5 Fluoropolymers

        6. 5.1.2.6 Polyoxymethylene (POM)

        7. 5.1.2.7 Polymethyl Methacrylate (PMMA)

        8. 5.1.2.8 Polyamide (PA)

        9. 5.1.2.9 Other Engineering Plastics (Liquid Crystal Polymer, Polyether Ether Ketone)

      3. 5.1.3 Bioplastics

    2. 5.2 Technology

      1. 5.2.1 Injection Molding

      2. 5.2.2 Extrusion Molding

      3. 5.2.3 Blow Molding

      4. 5.2.4 Other Technologies

    3. 5.3 Application

      1. 5.3.1 Packaging

      2. 5.3.2 Electrical and Electronics

      3. 5.3.3 Building and Construction

      4. 5.3.4 Automotive and Transportation

      5. 5.3.5 Furniture and Bedding

      6. 5.3.6 Other Applications (Houseware)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Asahimas Chemical Company.

      2. 6.4.2 BASF SE

      3. 6.4.3 LOTTE CHEMICAL TITAN HOLDING BERHAD.

      4. 6.4.4 PT. INNAN

      5. 6.4.5 PT Pertamina(Persero)

      6. 6.4.6 PT Polychem Indonesia Tbk

      7. 6.4.7 PT Chandra Asri Petrochemical

      8. 6.4.8 LyondellBasell Industries Holdings BV

      9. 6.4.9 PT. Standard Toyo Polymer (Tosoh Corporation)

      10. 6.4.10 Sulfindo Adiusaha

      11. 6.4.11 PTT Global Chemical Public Company Limited

      12. 6.4.12 P.T. Solvay Chemicals Indonesia

      13. 6.4.13 P.T. Toray International Indonesia

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Rising demand for Eco-friendly Products

    2. 7.2 Other Opportunities

**Subject to Availability
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Indonesia Plastics Market Research FAQs

The Indonesia Plastics Market market is studied from 2017 - 2027.

The Indonesia Plastics Market is growing at a CAGR of >6% over the next 5 years.

BASF SE, PT LOTTE CHEMICAL TITAN Tbk, PTT Global Chemical Public Company Limited, PT Polychem Indonesia Tbk, TORAY INDUSTRIES, INC. are the major companies operating in Indonesia Plastics Market.

Indonesia Plastics Industry Reports

In-depth industry statistics and market share insights of the Indonesia Plastics sector for 2020, 2021, and 2022. The Indonesia Plastics research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Indonesia Plastics report PDF.

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