JAKARTA (RambuEnergy) – The Indonesia plastic pipes and fittings arket is expected to record a single digit positive CAGR from 2018-2023 driven by the government’s investment in infrastructure and private expenditure on real estates, Ken Research said in its latest report.
The Indonesian government has been investing heavily in the infrastructural sector along with private developers’ investment in residential and retail real estate projects which are in pipeline. Multiple projects are being undertaken by the government to improve the traffic congestion.
According to the Ken Research report, the drinking water sources most commonly used by Indonesian households are bottled water (35.2%), protected dug well (18.7%), borewell (15.6%), and piped water/water utility (PDAM) (10.4%).
Ken Research said in their latest publication on “Indonesia Plastic Pipes and Fittings Market Outlook to 2023 – By PVC, PE, ABS, PP, PVDF Pipes and By End User Application (Water Supply and Irrigation, Sewage, Mining, Cable Protection and Others” that the plastic pipes market is expected to record a CAGR of 5.4% from 2018-2023.
The demand was met by the rise of downstream processing capacity.
The consumption of oil is increasing in various industries that depend on crude oil. The growing population in the country and the refining capacity of Indonesia is expected to increase in the coming years that would contribute further to the growing demand for plastic pipes and fittings.
The report cited PT Kilang Kaltim Continental, which is expected to work on building a modular refinery at KIPI Maloy Port and industrial park, Indonesia. Pertamina, which is Indonesia’s state-owned energy company, is also planning to increase its capacity by 260,000 Barrels/Day, by the end of the year 2020 by expanding its Balikpapan refinery.
In addition there has been a shift from PVC pipes to PE pipes. PE pipes including HDPE, MDPE, and LDPE are widely used in drainage systems and drip irrigation systems as they have good temperature resistance.
In Indonesia, it has been observed that there has been a shift from PVC to PE pipes majorly due to the advantages offered by PE. Currently 10.41% of household in Indonesia doesn’t use any toilet facility for defecation. Around 78% of the households have a private toilet facility.
The report also highlights the development of bioplastics in the market. It said bioplastics are expected to enter the market as they can be recycled easily. The use of plants for manufacturing plastics would divert this resource from food to the production of plastic; as a result, seaweed is a better substitute for the production process.
It is cheap and does not require heavy investment as it can grow without fertilizers and does not require land as it grows offshore. Moreover, Indonesia has a substantial role to play here as two-thirds of its territory is water and it accounts for more than one-third of the world seaweed production. (*)