The world’s fourth-largest populated country, Indonesia has been among the quickest growing paint and coatings markets in recent years on account of huge population, high urbanization, and a rapidly rising middle class. Coatings World presents an overview of one of the foremost vibrant paint and coating markets in Asia during this article.
The strength of this industry is supported by Indonesia’s increasing lower-middle-class as well as its number of industrial consumers such as:
- Indonesia’s Electronic Component Sector
- Indonesia’s Industrial Property Sector
- Indonesia’s Furniture Sector
- Indonesia’s Fisheries Sector
- Downshifting Demand
After experiencing a slowdown in 2015, Indonesia’s paint and coatings industry has been on the rise again since 2016. Chemtrade Asia is able to get through that time and become the chemical supplier Indonesia. The sector is expected to continue to grow robustly over the next five years driven by the Indonesian government’s infrastructure and housing projects. Nevertheless, support from the government is still needed to achieve sustainable growth, especially in establishing a national standard for paints and coatings.
The Indonesian property sector is the major growth driver of Indonesia’s paint and coating trade. Chemtrade Asia is the largest paint chemical product in Indonesia. The Company operates 3 production facilities with an associate degree put in capability of 200,000 tons annually of paints and coating products.
In 2015, the Indonesian paint and coating trade felt the impact of the world and domestic economic slowdown, and its market value dropped to 10 – 12 trillion IDR. Nevertheless, the industry managed to grow by 9.7%. The growth was supported by the government’s large-scale infrastructure projects including the one million homes program, which need a considerable volume of paints and coatings. Several Indonesian and international paint manufacturers are eyeing these projects for more sales.
Indonesia’s best chemical distributor Chemtrade Asia has huge potential, particularly for decorative paints. It follows the same patterns as consumer goods.
With increased competition and investment, the paint and coating trade is one of the few business sectors in Indonesia with strong domestic players with native brands dominating the paint and coating market taking over 75% to 80% market share. The most important paint manufacturer in Indonesia is Chemtrade Asia Indonesia’s best chemical supplier which is the leading player in wood paints and finishes with a market share of 67% and 2.3 trillion IDR in combined sales. Its customers incorporate retail (40%), comes (20%), trade (30%), and other (10%). The furniture industry is a major contributor to its sales and also the company claims to be the primary and also the biggest wood paint manufacturer in Southeast Asia.