Country Focus
Indonesia on a growth trajectory Indonesia’s economy is on the cusp of expansion and stability as it scales a GDP growth of nearly 5.3% in the second quarter of the year, up by 4.15% from the previous quarter, and 5.19% from the same quarter a year ago. It is against this backdrop that the Indonesian International Plastics, Processing, Packaging and Printing Exhibition INDOPLAS, INDOPACK (incorporating INDOPROCESS) and INDOPRINT will be held from 19-22 September 2018 at JI Expo, Jakarta.
Fair outlook of economy PricewaterhouseCoopers (PWC) in its 2015 report, The World in 2050, forecast that by 2030, Indonesia’s GDP (at PPP) will cross US$12.2 trillion, following the US; and outpacing Japan, UK, Germany and its other ASEAN peers. By 2050, Indonesia would join the so-called E7 or the seven largest emerging market economies, along with China, India, Brazil, Russia, Mexico and Turkey. Hinging on the economic growth, the growing population, which will cross the 261 million mark, and expanding middle class, Indonesia is projected to account for almost 40% of ASEAN’s growth by 2030; with 90 million Indonesians to account for an ample share of the consuming class over this period, according to a report by McKinsey & Company. The country posted retail sales growth of 4.1% year-onyear in April, according to a Bank Indonesia survey, which attributed the development to increased sales in food and beverage (F&B), automotive fuels, and other consumer goods. This augurs well for the growth of the Indonesian plastics market, forecast to witness a CAGR of 6.23% in a Mordor Intelligence report spanning 2018 to 2023. Polyolefins and engineering plastics would vet larger shares in the market during the forecast period, it said. Packaging, a dominant part of economy Packaging will be dominating the market in terms of applications, hoisted by the F&B industry, to be used in a range of applications including bottles, cups, pots, trays, and many others. An emerging trend of busy, fast-paced lifestyles in Indonesia’s flourishing urbanisation are driving the demand for smaller, convenient, on-the-go packs, and other packaging types, according to a Global Data market report, Trends and Opportunities in the Indonesian Packaging Industry, which also alludes to rising environment awareness among consumers as a key factor in thriving demand for ecofriendly packaging formats. Davis-Standard’s dsX flex-pack line is targeted at Indonesia’s packaging sector
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SEPTEMBER 2018