Indonesia Plastics Market Expected to Reach USD 14.03 Billion by 2033 at a CAGR of 5.99%

Indonesia Plastics Market Report Introduction

According to IMARC Group's report titled "Indonesia Plastics Market Size, Share, Trends and Forecast by Type, Technology, Application, and Region, 2025-2033" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

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Indonesia Plastics Market Overview

The Indonesia plastics market size was valued at USD 7.84 Billion in 2024. IMARC Group projects the market to reach USD 14.03 Billion by 2033, growing at a CAGR of 5.99% during the forecast period 2025-2033. The market is propelled by growing demand from packaging, automotive, and consumer goods sectors due to plastics' lightweight, durable, and cost-effective properties. Increasing urbanization and infrastructure development further support plastic consumption in construction and housing applications.

Indonesia Plastics Market Key Takeaways
• Current Market Size : USD 7.84 Billion in 2024
• CAGR : 5.99%
• Forecast Period : 2025-2033
• Java accounted for the largest market share in 2024, being Indonesia's economic and industrial hub.

• Market growth is driven by rising demand from food and beverage packaging, e-commerce, construction, and automotive sectors.

• Government initiatives on plastic pollution control and bioplastics development are shaping market trends.

• Increasing investments in recycling technologies and domestic manufacturing capabilities enhance market growth.
Indonesia Plastics Market Growth Factors

• The food and beverage industry increasingly demands lightweight yet strong plastic packaging solutions.

• Rapid growth of the e-commerce sector is driving demand for multipurpose, durable, and secure packaging materials.

• The automotive sector continues to expand the use of plastics for construction, components, and transportation efficiency.

• Manufacturers are expanding domestic production capacities and investing in advanced recycling technologies.

• The federal government has implemented initiatives such as the "Stop Plastic Pollution" campaign and Extended Producer Responsibility (EPR) regulations.

• Shifting consumer preferences toward convenient packaged products are creating new growth opportunities.

• The Indonesian Ministry of Industry has introduced new bioplastics innovations to support sustainable materials.

• Supportive trade policies and regulatory frameworks are improving production efficiency across the plastics industry.

• Plastic products are increasingly available through organized retail formats, improving market accessibility.

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Indonesia Plastics Market Trends

• Indonesia's steady economic growth, recording 4.87% year-on-year growth in Q1 2025, is driving increased demand for plastics across packaging, construction, automotive, and consumer goods sectors.

• Plastics are widely preferred due to their low cost, ease of molding, and ability to support complex manufacturing designs.

• The construction industry extensively uses plastics for pipes, insulation, and coatings in residential and commercial projects.

• Manufacturers favor plastics to produce affordable, lightweight, and durable products for Indonesian consumers.

• Plastics play a critical role in the automotive and electronics industries, including applications in auto parts, casings, and wiring.

• Rapid urbanization- with urban population at 56% in 2022 and projected to exceed 70% by 2040- is increasing demand for plastics-based infrastructure and modern lifestyles.

• Plastics are essential components in housing, transportation, utilities, packaged goods, waste management systems, water supply, and urban furniture.

• A booming e-commerce sector, accounting for 26.5% of retail sales by 2024, is accelerating demand for advanced plastic packaging solutions.

• Growing consumer awareness is supporting the development and adoption of recyclable and bio-based plastics.

Indonesia Plastics Market Segmentation

Analysis by Type:

• Traditional Plastics: Includes Polyethylene, Polypropylene, Polyvinyl Chloride, Polystyrene. Traditional plastics dominate with around 73.7% market share in 2024 due to cost-effectiveness and broad availability.

• Engineering Plastics: Includes Polyethylene Terephthalate (PET), Polybutylene Terephthalate (PBT), Polycarbonates (PC), Styrene Polymers (ABS and SAN), Fluoropolymers, Polyoxymethylene (POM), Polymethyl Methacrylate (PMMA), Polyamide (PA), and others.

• Bioplastics: Emerging segment influenced by government initiatives promoting biodegradable plastics.

Analysis by Technology:

• Injection Molding: Leading technology in 2024, favored for versatility, speed, suitability for complex parts, and high volume manufacturing.

• Extrusion Molding
• Blow Molding
• Others

Analysis by Application:
• Packaging: Dominates due to rapid urbanization,

expanding FMCG sector, and booming e-commerce.
• Electrical and Electronics
• Building and Construction
• Automotive and Transportation
• Furniture and Bedding
• Others

Regional Insights
• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Java is the leading region, holding the largest market share in 2024 due to its status as the economic and industrial center with advanced infrastructure, dense population, and concentration of manufacturing and distribution networks.

The plastics market in Java grows in line with the national CAGR of 5.99% during 2025-2033.

Indonesia Plastics Market Recent Developments & News

• May 2025: Dow signed a second MOU with Indonesia's Pan Era Group to enhance the supply of high-quality post-consumer recycled (PCR) polyethylene resins, supporting circular economy goals.

• April 2025: CSEAS Indonesia launched Phase II of the "Breaking the Plastic Habit in Asia" project using nudging theory to reduce single-use plastics across ASEAN.

• February 2025: GGGI and Bappenas launched a USD 60 Million initiative to build a sustainable plastics value chain, aligned with Indonesia's Circular Economy Roadmap.

• December 2024: ADB and LEAP launched a USD 44.2 Million blue loan with PT ALBA Tridi to build a PET recycling facility in Central Java.

• November 2024: YIZUMI expanded Indonesian market presence with new service offices and showcased energy-efficient injection molding machines at Plastics & Rubber Indonesia 2024.

Indonesia Plastics Market Key Highlights of the Report

• Comprehensive quantitative analysis of market segments, historical and current trends.

• Detailed forecasts for 2025-2033 by type, technology, application, and region.

• Insights on market drivers, challenges, and opportunities.

• Porter's five forces analysis for competitive landscape understanding.

• Profiles of major market players and strategic initiatives.

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