Plastic Imports to Surge by 15% in 2017: Inaplas
Jakarta. Indonesia is likely to import $2.3 billion worth of polypropylene — a raw material used to make plastic goods — this year, up 15 percent from last year, due to rising demand from the automotive, garment, construction and food and beverage industries.
"Domestic demand is growing well, but local plastic manufacturers are unable to cater to the demand. So, we have to cater to the demand by importing the raw material," Fajar Budiono, the secretary general of Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas), said on Monday (15/05).
Inaplas estimates that 1.2 million tons of polypropylene will be imported this year, up 20 percent from last year.
Polypropylene will be used for a wide range of products including packaging, textiles, automotive components, household products, toys and banknotes.
"Many construction projects are using plastic now. So, there are certainly positive signs that the demand for plastic will grow," Fajar said.
Indonesians today are among the lowest plastic consumers in Southeast Asia. They consume about 17 kilograms of plastic per capita annually, compared to 35 kilograms in Malaysia and 40 kilograms in Thailand.
Should the growth trend continue, plastic consumption in Indonesia could rise to 21 kilograms per capita this year, Fajar said.
Ariana Susanti, the director of business development at Indonesia Packaging Federation agreed with Fajar's estimate.
FPI expect orders for packaging in the second quarter to increase by 10-15 percent from the same period last year due to an increase in demand during Ramadan, the Islamic month of fasting — which will commence on May 27 this year — and Idul Fitri festivities marking the end of the fasting month.
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