Extrusion International 2-2024-USA

76 Extrusion International 2/2024 CHINAPLAS 2024 Indonesia’s Packaging and Automotive Sectors Spur Demand for Plastics The industrial sector of Indonesia has been contributing to its overall economic growth, regardless of the upward momentum of its production in terms of volume and value in the past few years. Government incentives to investors, favorable business environment, significant improvement in technologies and skilled manpower are among the factors that encourage the expansion of industrial sector. In particular, the plastics industry in Indonesia is exhibiting sustained growth in the next few years owing to rising demand spurred by increase in consumer expenditure. With its huge population of 277 million, Indonesia has become an attractive consumer market and given the fast-paced changing life- styles of buyers with higher dispos- able income, manufacturers are focused on meeting the require- ments by building their production capabilities. Indonesia’s plastics market size was valued at US$8.63 billion in 2022 and is likely to each US$ 14.58 billion by 2031, expand- ing at a CAGR of 6% during the forecast period 2023–2031, accord- ing to the projection by Growth Market Reports. Several important industries are crucial to Indonesia’s plastics industry – packaging, auto- motive and medical are experienc- ing rapid development. Indonesia’s packaging industry remains the major application of plastics. A report of Global Data states that the country’s packaging market size, valued at 151.3 billion units in 2022, is poised to register a CAGR of more than 3% during the period 2022 to 2027 with flexible packaging segment dominating the market share until 2027. From a linear model, Indonesia’s packaging industry is fast moving towards a circular economy. This has been made more pronounced by the investments of leading companies into areas that will reduce, recycle and re-use plastics. As an economy battling huge plastic waste stockpile reaching 18.99 million tons per year based on Environment and Forestry Ministry data, Indonesia has placed circular economy as its main focus by implementing Golden Indonesia Vi- sion 2045 which is the long-term na- tional development plan. Thus, the utilization of recycled materials has become the goal of many Indonesian companies that plan to go through the route of circular economy route. This has brought huge opportunities to companies supplying advanced recycling solutions and sustainable materials. This has also opened new horizons to both Indonesian and foreign companies operating in Indo- nesia that a number of significant ventures into plastics manufacturing has been launched in the country’s vari- ous industrial centers. Coca-Cola in Indonesia has launched its new packag- ing made by 100% recycled PET (rPET), excluding caps and labels, in line with the vision of World Without Waste. Coca-Cola operates a recycling plant, Amandi- na Bumi Nusantara, located in Cikarang. The recycling Indonesia’s huge population of 277 million has become an attractive consumer market with huge demand for consumer products (Image:Tom Fisk/Pexels) Coca-Cola Indonesia launched new packaging made by 100% recycled PET (rPET), excluding caps and labels, in line with its vision of World Without Waste (Image: Coca-Cola Indonesia)