Indonesia is the largest economy in Southeast Asia, the world’s 4th most populous nation, and the 10th largest economy in purchasing power parity.
The chemical industry is one of the top three sectors (Top 3) contributing to the performance of the non-oil and gas processing industry and spurring national economic growth. The industry also has been a part of the 10 (Ten) priority industries in the Making 4.0 industrial program since 2018.
The chemical products industry and basic chemical derivatives are important factors in Indonesia’s national production needs. The chemical products industry has become the basic capital for various downstream industrial sectors such as food and beverages, fabric fibres, textiles, packaging, plastic goods, electronics, automotive, and pharmaceuticals. Therefore, the government continues to develop the chemical industry as a strategic industry that will play an important role in national development for the next few years.
The Indonesian government is also committed to supporting the growth of the chemical industry and implementing several policies to encourage this industry, such as tax breaks and subsidies, as well as investing in infrastructure development, such as ports and new roads supporting this industry.
Some of the main trends shaping the future of the chemical industry in Indonesia:
- Increased demand for chemicals in the agricultural, automotive, and construction sectors.
- Increased focus on environmental sustainability.
- The emergence of new technologies, such as 3D printing and artificial intelligence.
- The increasing importance of the digital economy.
These trends create new opportunities for the chemical industry in Indonesia. The industry is well-positioned to take advantage of this opportunity and is expected to play an increasingly important role in the country’s economy in the years to come.