Plastics and Rubber Indonesia 2015 Post Show Report
Thursday, 3 December 2015
The British Plastics Federation (BPF) has recently returned from the key plastics exhibition in Indonesia, which was held in Jakarta between 18th and 21st November 2015, where we coordinated a group of UK exhibitors under the British Pavilion banner.
The event runs every year but for the first time there was an officially organised UK group of exhibitors supported by the UK Trade & Investment. This year was the 28th edition of the show which was co-located with other related exhibitions: Mould & Die Indonesia, Plaspak Indonesia and Drinktech.
The official statistics from the show are as follows:
- Total visitors:13,019
- Exhibiting companies: 638
- Exhibiting countries/regions: 29
- International Group Pavilions: 9 (China, Germany, India, Italy, Korea, Singapore, Switzerland, Taiwan, United Kingdom)
British Pavilion
The British Pavilion at Plastics and Rubber Indonesia featured eight exhibitors, some of which were new to the market and some already having customers in Indonesia but wanting to strengthen their existing links.
The UK exhibitors at the show were:
• Intouch Monitoring Ltd
• Gas Injection Worldwide Ltd
• J & A Young (Leicester) Ltd t/a JAYPLAS
• Fraser Anti-Static Techniques Ltd
• Gilbert Curry Industrial Plastics Co Ltd under www. theplasticshop.co.uk
• British Plastics Federation
• Wells Plastics
• EPI Europe
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"This was the first time we had organised a British Group at a show in Indonesia and we were incredibly pleased with the outcome. The market clearly offers huge potential for UK firms and Plastics and Rubber Indonesia proved the perfect way for our firms to explore the market and meet the key decision makers. All our firms commented on the incredibly high profile of the exhibitors and all firms left the show highly satisfied that their aims and objectives had been met. Indeed one of the companies exhibiting as part of the British Pavilion said that it was the best show they had exhibited at in the last 10 years!" Stephen Hunt, Membership Services Director, British Plastics Federation |
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The UK exhibitors were supported by UK Trade & Investment grants of £2,500, which covered the cost of their stand and made the show more cost effective. The BPF administers the UKT&I grants and can assist UK companies in filling in their application forms if necessary.
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"Intouch already has a few clients in South East Asia including just one in Indonesia. We are hoping to gain more in Indonesia as a result of exhibiting at the show this year. Our production monitoring, scheduling and reporting system can really help the manufacturers in Indonesia who will be able to save money by process optimisation and improving efficiency. In the four days of the show we made several good contacts which we hope will result in some new business relationships very soon." John Hardwick, Intouch Monitoring Ltd |
Most of the exhibitors, prior to the show, came to a seminar organised by the BPF on “Opportunities in Indonesia and Vietnam”, which was held on the 10th November in Birmingham. The seminar featured presentations by the British Chamber of Commerce in Indonesia, Indonesian and Vietnam Embassies in UK, UK ASEAN Business Council and more. The pre-exhibition seminar gave attendees some practical tips on doing business in Indonesia and provided them with a chance to meet one another.
During the show, representatives from British Chamber of Commerce Indonesia and UKT&I Indonesia met the exhibitors and discussed ways they can assist UK companies and help them on the ground.
Most of the British Pavilion exhibitors stayed in the group recommended hotel, which was beneficial for networking with fellow colleagues from the UK Plastics Industry after the exhibition hours. As attendees were all exporters, they face similar challenges and shared their experiences with each other. Being part of the group gave the UK exhibitors a more enhanced stand at the show, which normally could be overlooked if they were going to come as an individual stand.
As part of the UK Pavilion offer, the exhibitors were listed in the British Guide with their company profiles and contacts details. Their profiles were printed in English and also translated to Indonesian. Apart from the British exhibitors, the guide listed all BPF members. The printed version of the brochure was distributed during the show and the electronic version is available to download here
The BPF represented its members during the show and collected business enquiries from the local visitors. The sales leads have been collated into an Excel list, which is available to download for BPF Members under the Exporters Toolbox section on the BPF website. We have recorded quite a few contacts from the local agents and distributors wishing to represent materials and machinery companies from UK which should be of interest to our members wishing to enter the market.
Indonesia and opportunities for the plastics industry
With a population of over 250 million and increased governmental efforts to industrialize the nation, Indonesia is expected to develop into the world’s seventh largest economy by 2030. In order to grow the nation’s economy, the Indonesian government has focused its attention on cultivating the country’s domestic plastic production. The nation currently imports over 40 percent of its plastics, with most imports arriving from Singapore, Malaysia, Thailand, Europe, and the United States. In order to promote a greater reliance on domestic plastic production, Indonesia’s Plastics and Rubber Scheme announced plans to obtain 70 percent of the nation’s plastics from local companies. Additionally, plastic imports to Indonesia are subject to tariffs as high as 20 percent of the shipment cost.
In 2014, Indonesia’s per-capita plastic consumption averaged 17 kilograms, compared with an annual consumption rate of 35 kilograms per person in Malaysia and 100 kilograms per person in Europe. However, Indonesia’s middle class is expected to double to a total of 141 million people within the next five years, and plastic consumption is anticipated to grow in tandem with the development of a larger consumer market and increased demand for packaged goods.
Local plastic makers rely on imports due to raw material shortages in Indonesia. Currently over 40% of the petrochemicals used in the plastics industry comes from abroad.
Most of the nation’s plastics imports, comprising principally propylene and polyethylene, come from neighbouring countries, including Singapore, Malaysia and Thailand, as well as from Europe, the US and the Middle East. The nation’s primary consumer usages of purchased plastic is food and beverage packaging, followed by the nation’s agricultural, automotive, and electronics sectors. According to the Indonesian Packaging Association, food packaging accounts for 70 percent of plastic consumption sales and grew by a total of eight percent in 2013 to total USD 5.3 billion. Plastic raw material sales increased by seven percent last year and reached over USD 4.8 billion.
However, despite significant efforts to expand its plastics industry, Indonesia lacks a large-scale plastic recycling model. Currently, most plastic recycling is handled on an individual business basis, but the government has expressed interest in establishing a national plastics recycling program in order to generate increase plastic production.
The next edition of Plastics and Rubber Indonesia will be held in Jakarta between the16th and 19th November 2016. For more information on other foreign plastics trade shows with UK Pavilion run by the BPF visit www.bpfevents.co.uk
USEFUL LINKS:
Indonesia’s Plastics and Packaging Industry:
More links:
http://www7.bkpm.go.id/contents/general/117123/cost-of-doing-business
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