Petrochemicals industry in Indonesia 2012
Thursday, Jan 24, 2013
Research and Markets (http://www.researchandmarkets.com/research/g68jnm/petrochemicals) has announced the addition of the "Petrochemicals Industry in Indonesia" report to their offering.
The Indonesian petrochemical industry has been encountering a rapid rise in its dependency on imported polymers recently. Indonesia is also set to witness a rise in polymer capacity in 2011 and beyond, although this will not be nearly enough to achieve self-sufficiency, let alone an export-oriented industry. Currently, a growth of 6.1% in its GDP was reported, all thanks to a rise in investments and private consumptions. This seems like good news for the petrochemicals consumption as it is likely to result in providing of more support for the industry to grow and expand in all aspects.
This island nation is also becoming increasingly attractive as an investment destination for petrochemical producers, particularly from Taiwan and Japan. Demand for polymers grew by nearly 7% in Indonesia in 2010 and is set to strengthen in 2011 with an expected growth of more than 10%. With the petrochemical industry dependent on the domestic market, economic trends will be crucial in determining the performance of the sector. Private consumption and investment growth will continue to power output growth in 2011 and beyond, as Indonesia embarks on what is greatly anticipated to be a decade of robust economic growth.
However, there are widespread concerns of scarcity of domestically sourced materials over the short term as some producers have been cautious about increasing production, amidst fears that it could swing prices the other way and create a situation of oversupply. Key producers of petrochemicals in the country are Carbon Core, Batavia Trade & Cons., Vippo Enterprises Pte Ltd., Indonesia Exim and Aneka Gas.
Source: Business Wire