Trends in Paper & Pulp Industry in Indonesia
Indonesia is one of the most favourable business locations in Asia as it has an abundance of natural resources and industrial facilities. To support this the nation has seen strong GDP growth. Indonesia is projected to see a solid GDP increase of 4.5%-5.3% in 2023, and then a further climb of 4.7%-5.5% next year. As the largest Southeast Asian economy and the 16th largest in the world, Indonesia is a land of opportunities for businesses.
Manufacturing Industry in India:
The manufacturing sector in Indonesia plays a vital role in the country’s social and economic development. Over the last decades, the government has prioritized the manufacturing sector to maximize its potential contribution to accelerated industrialization. Today, the manufacturing sector is Indonesia’s largest GDP contributor (approx. 30%) and lies at the heart of the Indonesian government’s goals to develop the country into the top ten largest economies globally by 2030.
The manufacturing industry also plays an important part in Indonesian exports, accounting for more than 70 percent of the country’s overall export value. Due to its cost-effectiveness and abundant labor, Indonesia is becoming a more enticing destination for foreign investments.
Global paper and pulp industry – Potential
The market value of pulp and paper is predicted to continue to grow to USD 380.12 billion in 2030 with a CAGR of 4% for the period 2022 to 2030. This market growth was triggered by the increasing use of paper-based packaging due to the development of the e-commerce and internet industries, especially in developing countries.
The current global trend is that several countries are trying to create eco-friendly and sustainable methods by enforcing regulations on the use of plastic packaging. This has also fuelled a rise for paper bags as a more environment friendly and cost-effective substitute.
Based on its use, paper products on the global market include printing & writing, corrugating materials, tissue, wrapping paper, and others. In 2019, the corrugating segment contributed the largest revenue, namely more than 30% of the total market share in the world. Asia Pacific is one of the main pulp producers and users in the world, mainly due to high domestic demand supported by easy access to capita.
The potential of the Pulp and Paper Industry in Indonesia
The export value of paper reached USD 4.22 billion with destinations to China, Japan, Vietnam, Malaysia, and the Philippines. With this export value, paper ranks 1st, and pulp ranks 4th for exports of forestry products in 2022 in Indonesia. Not only that, but Indonesia’s pulp products also rank 1st in ASEAN and rank 3rd in Asia, while paper is ranked 4th in Asia. At the world level, Indonesia is ranked 8th for pulp and 6th in the world for paper products.
Based on data from Fisher International, with 115 operating locations from 2014 to 2021, Indonesia plays an impactful role in the global structure of the pulp and paper industry. Forest Insight said that Indonesia has very adequate availability of raw materials, making Indonesia present a large business potential that has a significant impact on the national economy. In 2022 Indonesia’s pulp industry production capacity will be 12.13 million tons per year, while the paper production capacity will be 18.26 million tons per year.
Opportunities for equipment suppliers
Our company, NM India Sourcing is a top procurement company in India, exporting international standard boiler bank tubes, superheater coils, heat exchangers, economizer coils, and all other requirements for pipes, tubes and fittings for paper and pulp industries. Apart from sourcing solutions we also provide supply chain services to our overseas customers. If you are interested to tap the Indonesian market connect with us for further information or any business consultation – www.nmindiasourcing.com
