Overview of Chemical Industry in Indonesia and How to Buy Chemicals

Flag of Indonesia, One of Camachem Customers

Indonesian Flag

Introduction to Indonesia

Population: 273.5 million

Capital: Jakarta

Official Language: Indonesian

Total Area: 1.919 million km²

Currency: Indonesian rupiah (Rp)

Economy of Indonesia

Economic Overview:

  • With a nominal GDP of 1.058 trillion USD, Indonesia is the 16th largest economy on the planet.
  • The biggest industries include petroleum and gas, chemical fertilizers, mining, and textile.

Economy Breakdown of Indonesia:

  • Services: 44.4%
  • Industry: 38.26%
  • Agriculture: 13.7%

Indonesia’s Main Import Partners:

  • China: 26.3%
  • Singapore: 10.27%
  • Japan: 9.14%
  • Thailand: 5.33%
  • United States: 5.44%

Indonesia’s Main Export Partners:

  • China: 16.68%
  • United States: 10.66%
  • Japan: 9.54%
  • Singapore: 7.70%
  • India: 7.07%

Chemical Use In Indonesia

Indonesia’s chemical sector generated $17.6 billion in 2020 with a growing projection of 7.2% till 2030. It contributed to 1.19% of the national GDP.

All of Indonesia’s top industries, including textile, petroleum and gas, rubber, plywood, and fertilizers are tied to the necessity of the chemical industry. That is why Indonesia is a major importer of different chemicals.

Here are three of the top Indonesian industries that rely on imported chemicals.

  • Textile Industry

The Indonesian textile industry ranks among the largest foreign exchange-earners. The industry employs 3.7 million people and brings in billions of dollars through exports.

Camachem has been a long-standing supplier of chemicals to the textile business in Indonesia. A common chemical import is of Caustic Soda, used in dyeing and scouring.

  • Petrochemical Industry

By application, petrochemical products make the most use of chemicals. Together with textile, this industry added $18.04 billion to the country’s GDP in 2020. It is also expected to grow rapidly in the following decade.

Poly Vinyl Chloride, supplied by Camachem is among the most imported chemicals in this industry.

  • Fertilizers Industry

The fertilizers market of Indonesia is valued at $4.1224 million and is expected to grow with a 4.6% CAGR till 2026. The industry ties in with the agricultural sector and is hence crucial for the Indonesian economy.

Camachem is a regular supplier to fertilizer companies in Indonesia – Ammonium Sulfate is common demand.

Seaports And Trading Hubs Of Indonesia

Indonesia trades via both sea and air. The top seaports are:

  • Port of Tanjung Priok
  • Port of Belawan
  • Port of Tanjung Perak
  • Port of Kijing
  • Port of Bitung

Port of Tanjung Priok

Port of Tanjung Priok

For industrial chemical supply in Indonesia, Camachem uses the largest port of Tanjung Priok.

What Chemicals Does Indonesia Import?

The top 5 chemical categories imported by Indonesia in 2020 were:

  • Acyclic Hydrocarbons.
  • Cyclic Hydrocarbons.
  • Organo Sulphur Compounds.
  • Monocarboxylic acids and their derivatives.
  • Acyclic Alcohols.

What Regulations Are There On Importing Chemicals To Indonesia?

In Indonesia, there are two types of importers: manufacturing companies and general importers. Manufacturing companies are prohibited from selling imported chemicals, and general importers can distribute imported chemicals.

Import requires a B2 recommendation for hazardous chemicals. It needs complete company and chemical use details from the importer. Furthermore, all standard documentation, such as certificate of origin, bill of landing, Pro-forma invoice, etc., are mandatory as well.

Why Should Indonesia Import Chemicals?

· Costly Chemicals

The net cost with local chemical suppliers often amounts to more than international suppliers. Customers prefer suppliers like Camachem for competitive international rates and better deals on bulk orders.

· Quality of Chemicals

The quality of chemicals ties directly with finished goods of several other industries. International suppliers maintain quality all over the world.

· Long-Term Association

Local suppliers usually have contract limitations that don’t allow long contracts. International suppliers fare much better in this department and companies prefer it.

Where Can I Buy Chemicals For Indonesia?

Indonesia has been an active supply site at Camachem for years. Contact us now at [email protected] or WhatsApp us at +86-131-2037-9271 for a FREE quotation.

For more details and reasons behind Camachem’s stellar reputation, click here.

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