Market Trends of Indonesia Industrial Packaging Industry
Jerry Cans Witness Major Growth
- Indonesia's manufacturing sector has been pivotal to the country's economic trajectory. As highlighted in a Bloomberg Media article, the Indonesian government is now channeling efforts to attract foreign direct investment (FDI) into resource development and downstream processing.
- According to Statistics Indonesia, foreign direct investment in trade reached USD 943.8 million in 2023. Indonesia is one of ASEAN's largest economies, presenting foreign investors with promising growth opportunities, especially for those eyeing long-term commitments. This strategy aims to enhance the country's manufacturing prowess, solidify its regional and global trade stature, and accelerate national growth.
- To realize these ambitions, Indonesia has set a target of USD 545 billion in FDI by 2040, focusing on 21 commodities across vital sectors. The FDI influx aims to accelerate the industrial packaging sector, further accelerating the growth of primary packaging products like jerrycans.
- The chemical industry is one of the primary sectors demanding jerry cans. In this sector, jerry cans store and transport hazardous chemicals, solvents, and cleaning agents. The HDPE material, mostly preferred among end-use industries, is resistant to corrosion and chemical reactions, making jerry cans ideal for handling dangerous substances.
- Beyond the chemical industry, the fuel industry also heavily relies on jerry cans. Given their capacity to withstand pressure and endure harsh environmental conditions, jerry cans are vital for transporting fuel to remote sites, including construction zones, mining operations, and agricultural fields.
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Chemicals and Petrochemicals Industry to be the Largest End User
- Indonesia, one of Southeast Asia's largest economies, has experienced steady growth in its chemical industry over the past decade. The country's strategic location, abundant natural resources, and increasing domestic demand make it an attractive destination for chemical companies seeking to expand their operations.
- The chemical industry requires specialized packaging solutions that can safely handle and transport a wide range of chemicals, including hazardous materials. This includes containers like drums, IBCs (Intermediate Bulk Containers), and jerry cans that are resistant to chemicals and designed to prevent leaks and spills. As the chemical industry expands, the demand for such specialized packaging will rise, driving growth in the industrial packaging market.
- The diversity of the chemical industry in Indonesia, encompassing basic chemicals, specialty chemicals, and agrochemicals, necessitates a wide range of packaging solutions tailored to the specific properties of different chemicals. This includes packaging that can withstand corrosive materials, maintain the stability of volatile chemicals, and ensure the safe transport of hazardous substances. The need for such specialized packaging drives innovation and growth in the industrial packaging market.
- Industrial packaging is witnessing growth across various industries, such as chemicals. as According to Statistics Indonesia, the GDP from manufacturers of chemicals, petrochemicals, and botanicals has reached IDR 366.32 trillion (0.0236 USD Trillion) in 2023.
