{"id":740,"date":"2021-03-03T04:17:54","date_gmt":"2021-03-03T04:17:54","guid":{"rendered":"https:\/\/energi-adidaya.com\/?p=740"},"modified":"2021-03-06T08:38:17","modified_gmt":"2021-03-06T08:38:17","slug":"paint-and-coating-industry-for-marine-building-in-indonesia","status":"publish","type":"post","link":"https:\/\/energi-adidaya.com\/2021\/03\/03\/paint-and-coating-industry-for-marine-building-in-indonesia\/","title":{"rendered":"Paint and Coating Industry For Marine Building In Indonesia"},"content":{"rendered":"

The Indonesian Property sector is one of the main reasons for the growth of Indonesia\u2019s paint and coating industry. After an economic slowdown in 2015 Indonesian government had their backup by supporting infrastructure and housing projects for the next 5 years.<\/p>\n

Government support is expected to grow and gradually stable the growth in Marking a national standard for painting and coating over these years. However, since 2016 they picked up the pace. Even after programs and projects for the development of less income mass housing, the housing sector is still trying to keep up with the growing population and their demands.<\/p>\n

Many Indonesian millennials fear that they won\u2019t be able to buy in urban centers because the key component to secure the balance between middle-class and long-term economic growth is property ownership.<\/p>\n

The rise in the Paint Graph<\/u><\/strong><\/h2>\n

 <\/p>\n

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In the present 75 years of independence compared to the us dollar paint and coating industry can see a downturn in the rupiah exchange rate; Indonesia\u2019s paint and coating industry been in stable growth and was not much affected by the economic slowdown as the rising real estate developers, industrial consumers like property and Indonesia\u2019s middle class held the hand.<\/p>\n

More with the furniture makers, automotive industry, and electronic, marine. The Indonesian property sector is the major growth in demand for the tradition of repainting the house in public holidays like Eid and Christmas or New Year makes the rise in demand. Upcoming dates have hopes and visible strength in top 3rd<\/sup> furniture manufacturers with Vietnam and Malaysia in ASEAN.<\/p>\n

Domestic paint consumption of Indonesia in 2010 was 772,454 tons, Increased to 877,459 tons with a market value of 15 trillion IDR in 2014. More paint experts raising from 21,742 tons in 2010 to 29,068 tons in 2015. Imports from 45,927 to 65,392 tons between 2013 to 2014. More than half of paint sales in Indonesia are decorative paint by industrial and automobile. Market value dropped nearly 10 to 12 trillion IDR.<\/p>\n

The industry was denied 10%, and only 60% of production was used in 2015. An increase in the labor fee led to exacerbating the lower demand from the automotive and property sector, decreasing the profit by 0.4% in 2016. The industry managed to grow titanium dioxide by 9.7% annually, also was supported by large-scale infrastructure projects by the Indonesian government. Some of the projects required enough paints and coatings to maintain the growth.<\/p>\n

Increase in Competition and Investment<\/u><\/strong><\/h2>\n

Indonesia has the lead players by local brands dominating in the field of paint and coating market pumping up to 75% to 80% in share market game. With a market share of 67% and 2.3 trillion IDR in combined sales, PT Propan Raya Industrial<\/a> coating chemicals leading in wood paints. The biggest wood paint manufacturers in south-east Asia claim as the furniture industry relies on 30% of the sales, 40% Retailers, 20% projects, and others.<\/p>\n

The second leading paint is PT Avia Avian pushing the paint industry by holding an IPO (initial public offering) of 249 million USD, around 3 trillion IDR in 2017, and using it to maintain its brand mark in the market.<\/p>\n

More leading Paint and coating industries include Nippon Paint Holdings Co selling premium brands like Vinilex, investing 37.6 billion IDR in production. Jotun among the premium market product producers investing 30 million USD for distribution centers and increasing production to 100 million liters.<\/p>\n

Further large-scale industrial players within the Indonesian paint and coating businesses include Nippon Paint Holdings Co that sells premium brands like the Vinilex and more. The corporate accounted for 25% of the full sales value of decorative paints in Indonesia. The company’s ten factories produced 30% of commercial paints and 70% of decorative paints. In 2016, the corporate invested 37.6 billion IDR to extend its factory’s assembly capacity in Cibitung, Bekasi, by 40%.<\/p>\n

Jotun is one of the best examples of a serious paint producing company, which is paving way towards the premium paint company. The corporate expects this market to still grow amid a decline in medium and low-end segments. Not only that Jotun has gear up to set a target of extending its market share in decorative paint from 35% to 50% of the total sales. Another half is split between protective paint (30%) and marine paint (20%).<\/p>\n

To attain its goal, the corporate invested some USD 30 million for the development of a distribution center and expanded its factory to extend its production capacity to 100 million liters. Jotun currently owns three factories in Cikarang, Lego, and Cibitung.<\/p>\n

Another outstanding paint manufacturer is PT Kansai Prakarsa Coatings, publicly known as the \u2018Kansai Paint\u2019 brand. It holds the tea for being aggressively investing paint industry in Indonesia. The Kansai Paint corporate has invested nearly 60 billion IDR for constructing two emulsion and zinc chromate factories in order to extend its production rate. The paint industry has been known to operate a factory since 2015 in Tangerang with over an area of 4.2 hectares and employees over 600 workers. Notably, nearly 90% of its raw materials are sourced locally.<\/p>\n

In the automotive paint sector, DuPont and Indaco are among the highest players. Apart from the automotive paints, Indaco\u2019s paint-fruit append water-soluble decorative paints, wood stains, anti-corrosive coatings, and wood stains. It all comes under the brand named, Belazo and Invites.<\/p>\n

Lack of normal remains a problem<\/u><\/strong><\/h2>\n

One of Indonesia\u2019s paint industry’s foremost weaknesses is that the lack of standards that regulate the paint quality. Many domestic paint manufacturers haven’t complied with the international standards that are set. Some are even intentionally lowering their quality and using cheap and dangerous raw materials to supply lower prices to the market.<\/p>\n

The industry expects the govt. To issue a National Indonesian Standard (SNI) for paint products and ban pigments’ employment that use heavy metals like chrome and tin to shield domestic consumers. The introduction of SNI will enable domestic manufacturers to export their products and compete with foreign products within the domestic and international markets.<\/p>\n

Bright and Colorful Future Ahead<\/u><\/strong><\/h2>\n

Euromonitor calculates that the paint and coating industry’s CAGR will rise by 9.8% by the end of 2021, growing estimates up to 41.3 trillion IDR within 2021. This can be supported by the government\u2019s conception of investing 5.5 quadrillion IDR in infrastructure and residential construction projects until 2019, which can further sustain the industry’s expansion.<\/p>\n

Development in infrastructure including marine building, has stood as the key priorities of the administration. Shortly after he took office in 2014, President Jokowi launched a million homes and marine program. Under this initiative, the govt. It is set to create a million accommodation units per annum until its term ended in 2019.<\/p>\n

The Final Words<\/u><\/strong><\/h2>\n

Marine coatings also offer a remarkable growth avenue for the long run, given Indonesia\u2019s target reinvigorating its marine infrastructure<\/a> similarly to marine industries like fisheries and aquaculture.<\/p>\n

The Indonesian government has ratified the International Convention on The Control of Harmful Anti-Fouling Systems on Ships which needs ships to use anti-fouling paints. This can open up a replacement demand for the paint industry as Indonesia\u2019s shipbuilding sector grows in tandem with its marine-focused logistics ambitions<\/p>\n","protected":false},"excerpt":{"rendered":"

The Indonesian Property sector is one of the main reasons for the growth of Indonesia\u2019s paint and coating industry. After an economic slowdown in 2015 Indonesian government had their backup by supporting infrastructure and housing projects for the next 5 years. Government support is expected to grow and gradually stable the growth in Marking a […]<\/p>\n","protected":false},"author":3,"featured_media":741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"yoast_head":"\nThe Paint and Coating Industry For Marine Building In Indonesia - Energi Adidaya Nusantara<\/title>\n<meta name=\"description\" content=\"The Indonesian Property sector is one of the main reasons for the growth of Indonesia\u2019s paint and coating industry\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi-adidaya.com\/2021\/03\/03\/paint-and-coating-industry-for-marine-building-in-indonesia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Paint and Coating Industry For Marine Building In Indonesia - 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