Indonesia's economic growth is expected to rise in 2023 and beyond, despite the global economic downturn caused by the COVID-19 pandemic. Factors such as rising private consumption, strong exports, a successful response to the pandemic, and high investor confidence are all positive for the country's economic growth. According to the Indonesian government, the economy is expected to grow from 5.2% in 2022 to 5.3% in 2023.
The steady economic growth has boosted the development of various industries in Indonesia, including the plastics industry. The Indonesian plastics market is predicted to grow at a compound annual growth rate (CAGR) of over 6% during the period 2022-2027, according to Mordor Intelligence. The report also pointed out that the continued strong demand in the terminal application industry is expected to stimulate market growth during the period.
Indonesia remains a major importer of raw materials and machinery in Southeast Asia, enhancing the strength of the plastics industry by introducing advanced production systems. The country's plastic imports are expected to increase from US$9.49 billion in 2021 to US$11.22 billion in 2026, according to ReportLinker.
Injection molding technology is the mainstay of machinery demand, while the demand for extrusion machinery is also increasing. Indonesia's packaging, automotive, medical, and chemical processing industries are performing strongly, with steady demand for injection molding systems. In order to achieve the goal of a circular economy, Indonesian plastic manufacturers tend to choose environmentally friendly products, so there is also a huge demand for machinery that can process recycled plastic materials.
This is the last one.