Market Research of Polyamide in Indonesia

Copyright © 2017

Marc Sprakel and Muhamad Aliyudin M

Prologue

Strong demand on nylon based product make Indonesia become one of the attractive

target market for Polyamide. With a total consumption approximately 100,000

tons/year, polyamide in Indonesia used by textile, fishing nets, tire cord and nylon

films industry. Those product is one of Indonesia's export commodities, resulting in

quite large production quantities. Moreover, in a medium quantity, Indonesia uses

Engineering Polyamide as a raw material in the automotive and electronics industries.

Good market always create strong competition. Some key player of Polyamide has

already reached Indonesia since a long time ago. However, the chances are always

open for quality products in competitive price.

Supply and Demand of Polyamide in Indonesia

As we know that Indonesia has total consumption of Polyamide approximately 130.000

tons/year. Around 60% of it is gained by import and the rest is produced locally with

total import value aprroximately 180 Millions USD. As Indonesia produce Polyamide

locally, Indonesia also import caprolactam because none of the caprolactam industry

there.

Indonesia Economic OutlookIn Economic Perspective, Indonesia is a country with a fairly stable economy. Economic

stability could affect the enhancement on industries consumption and production. In low

conditions of global economy, Indonesia economy is able to grow about 5% with total

inflation of 3.7%. This makes Indonesia one of the promising target market in the

future.

Inflation

The movement of inflation in Indonesia

tend to be stable. However, if we look

at the chart, there are a few years that

shows the rate of inflation in Indonesia

is quite high. Usually, it is caused by

the impact of the global economic crisis

and political fluctuation during the

government transition. But overall,

Indonesia still can maintain the level of

inflation in a stable state with an

average inflation rate of 5.5%.

Annual GDP Growth Rate

British Prime Minister, David Ca

meron, even called Indonesia ha

s the potential to become one of t

he seven countries with the l

argest economy in the world.

GDP Per Capita

In the last 10 years, Indonesia GDP

per capita movement tend to be linier

from time to time. In 2015 the total

GDP per capita is about USD 3834.

If an indicator of prosperity of a count

ry is should have at least USD 5000

of GDP per capita, then we can

calculate it through extrapolation. By

extrapolating the data on the chart,

Indonesia could have USD 5000

GDP per capita at 2024.

Output Value of Medium-Big Industry

In this part, we took subsector

“Chemical and Goods from Chemical”,

because it is appropriate with our

Polyamide business. The chart shows

that the output value has sustainable

growth.

Although in 2013 the value has fallen

down, in 2014 the value rebound

significantly. From the chart we can

conclude that Indonesia has more

chance and prospect in chemical and its

intermediates business.

Polyamide Consumer

TYRE CORD

TEXTILE

NYLON FILM

FISHING NETS

PA - Engineering Plastic Consumer

ELECTRONICS

AUTOMOTIVE

Competitor

High potential market for Polyamde in Indonesia attracted so many supplier all around the

world. Through their representative office, they export Polyamide to Indonesia. Some key

player in the world such as BASF, DSM and DuPont has already entered Indonesia market

since a long time ago. Besides it, there is some local manufacturerers which surely fight for

the piece of the cake.

Competitor List Around The World 1. BASF - Germany

2. DSM - Netherland

3. DuPont - USA

4. Solvay - Belgium

5. Arkema - France

6. Kermel - France

7. Honeywell - USA

8. Evonik - Germany

9. Radici - Italy

10. Teijin – Japan

11. Asahi Kasei – Japan

12. Toray – Japan

13. Lanxess – Germany

14. Kolon – S. Korea

15. UBE Nylon – Thailand

16. Toyobo – Japan

17. Suzhou – China

Meeting Resume

As our meeting from 16 – 20th January 2017, we visited and met some prospect

customer in Indonesia. We meet eight customers with various fields starting from

textile, fishing net, nylon film and packaging industry, also we met a trader who gave

us some important information.