Extrusion International USA 1-2022

9 Extrusion International 1/2022 www.ChinaplasOnline.com „ Southeast Asia’s largest economy, Indonesia, has a fast- growing plastics industry owing to robust demand from its food & beverage (F&B) packaging sector that accounts for around 60% of the plastics industry’s output. The country’s huge population of more than 270 million presents an at- tractive market for F&B packaging. But Indonesia contin- ues to face mounting plastic waste problems that collabo- ration between the government and private organizations are directed towards programs and projects for an effec- tive waste management system and recycling in order to implement a circular economy. Indonesia generates about 6.8 million tons of plastic waste every year, according to the Indonesia National Plastic Ac- tion Partnership (NPAP), a collaboration between the Min- istry of Maritime Affairs and Investment and the Global Plastic Action Partnership. Roughly 80%of the plastic waste comes from land while the remaining 20% comes from coasts and oceans. The country announced a new plan dur- ing the World Economic Forum’s Annual Meeting in Davos in 2021, where it pledged to reduce marine plastic waste by 70% within fi ve years and to become totally pollution-free by 2040. The plan also calls for redesigning of plastic prod- ucts for recycling and eventual reuse, with the objective to double the recycling capacity in order to be able to process an additional of 975,000 tons of waste annually. Indonesia is also building and expanding its waste disposal facilities to manage an additional of 3.3 million tons of plastic waste yearly. The packaging industry is witnessing the fastest growth among the various plastics-dependent industries in Indo- nesia in terms of adherence to the smart manufacturing concept. This sector is projected to grow from 141.3 billion units in 2019 to 159.2 million units in 2024, registering a CAGR of 2.4%, according to a study by Reportlinker, which also states that fl exible packaging is expected to witness the fastest CAGR during 2019 to 2024 among other pack- aging types. Aside from ensuring fl exibility and improving pro fi tability, smart packaging is now being embraced in many prod- ucts – such as in foods and beverage, pharmaceuticals, etc. – to provide crucial information on product quality, ex- tend shelf life, trace movement of the product in the sup- ply chain, and for safety and protection. Indonesian plastics packaging manufacturers are becoming more aware that the only way to go is by implementing smart manufacturing through digitalization. Real-time production information plus product traceability are bene fi ts that smart manufac- turing offers which Indonesian companies are now serious taking into consideration in order to stay competitive. As some leading F&B companies in Indonesia have been following the Industry 4.0 trends, they also see the impor- tance of digitalization to meet their sustainability goals as they intensify their recycling to alleviate plastic packaging waste, especially single-use plastics. Members of the Pack- aging and Recycling Association for Indonesia’s Sustainable Environment (PRAISE) which established the Packaging Re- covery Organization (PRO) have identi fi ed methods from waste collection to recycling. PRAISE members include PT Coca-Cola Indonesia, Danone-Aqua, PT Indofood Sukses Makmur, In the area of smart packaging, even foreign companies are setting their sights into Indonesia’s vast market due to its large population. Baoshen Science & Applied Technolo- gies Co., Ltd (BSN), a leading Chinese company that pro- duces packaging materials for garment products (shoes, clothes and bags), furniture products, cosmetics, etc., has set up an operation at Indonesia’s Kendal Industrial Park. The construction of the factory started in August 2021 and is expected to be operational in June 2022. Since its found- ing in 1988, BSN has succeeded in becoming a “smart pack- aging” industry by establishing a Technology Center for RFID-based label design and production. Southeast Asian countries, like Indonesia, present opportu- nities for companies offering high-tech solutions for pack- aging production. With digitalization and smart manufac- turing becoming the trends of the future for the packaging sector, CHINAPLAS 2022 brings under one roof the best so- lutions that manufacturers from Southeast Asia and from other parts of the world can utilize to boost their produc- tivity and strengthen their competitiveness. Chinaplas 2022 – Indonesia Embarks on Smart Manufacturing for Sustainable Plastics Production Indonesia is a major potential market for smart manufacturing technologies (Photo: Tom Fisk/Pexels)