Business Opportunities (Industrial Manufacturing)

Aluminum production is projected to surge about 76.92% to 2.3 million tons per year in 2022. In 2019, the capacity to process bauxite into national alumina will reach 1.3 million tons per year. In composition, the local industry is able to produce 1 million tons of alumina grade smelters and 300,000 tons of chemical grade alumina.

Globally, total crude steel production reached 1.621 million tons in 2016 (it is up to 0.8% from the previous year). The 50% of these products come from China, then followed by Japan, India, the United States, Russia and South Korea. From an economic point of view, steel is the most important base metal with a global market value of USD225 billion per year. Indonesia’s total crude steel consumption in 2016 amounted to 14 million tons, while total domestic production only reached 8 million tons. Remarkably, in order to meet domestic needs, Indonesia must import 6 million tons of steel products. 

Throughout 2018, the food and beverage industry is able to grow by 7.91% or exceed the national economic growth at 5.17%. In fact, the growth of large and medium manufacturing industry production in quarter IV-2018 increased by 3.90% (y-on-y) compared to quarter IV-2017, one of which was caused by the increase in beverage industry production which reached 23.44%. Furthermore, the food industry is one of the sectors that supports the increase of national investment value, which contributed up to Rp 56.60 trillion in 2018. The realization of the total value of investment in the manufacturing industry sector reached the amount of Rp 222.3 trillion in 2018.Selanjutnya, industri makanan menjadi salah satu sektor yang menopang peningkatkan nilai investasi nasional, yang pada tahun 2018 menyumbang hingga Rp56,60 triliun. Realisasi total nilai investasi di sektor industri manufaktur pada tahun 2018 mencapai Rp222,3 triliun.

The majority of palm oil produced in Indonesia is exported. The most important export destination countries are China, India, Pakistan, Malaysia and the Netherlands. In 2016, the total palm oil production in Indonesia was 32 million tons, while the total exports reached to 27 million tons. Nearly 70% of palm oil plantations are located in Sumatra, where the industry began in the Dutch colonial period.

Cement exports from production facilities in Indonesia reached  the amount of 3.15 million tons, it is 68.7% up when compared to 2017, which only recorded in 1.87 million tons. While total domestic and export cement sales in 2018 were 33.15 million tons, this sales were included from Thang Long Cement (TLCC) in Vietnam.

In 2016, rubber plantations in Indonesia reached a total area of ​​3.64 million hectares. Around 85% of Indonesia’s rubber production is exported abroad. Nearly half of the exported rubber is shipped to other Asian countries, followed by North America and Europe. The top five countries that import the most rubber from Indonesia are the United States (which consumes almost 22% of Indonesia’s total exports), folowed by the People’s Republic of China (PRC), Japan, Singapore and then Brazil.

In 2016, rubber plantations in Indonesia reached a total area of ​​3.64 million hectares. Around 85% of Indonesia’s rubber production is exported abroad. Nearly half of the exported rubber is shipped to other Asian countries, followed by North America and Europe. The top five countries that import the most rubber from Indonesia are the United States (which consumes almost 22% of Indonesia’s total exports), folowed by the People’s Republic of China (PRC), Japan, Singapore and then Brazil.

With full support from the government, the increasing of domestic disposable income, and growing market demand for footwear, Indonesia offers great investment opportunities in the footwear industry. A competitive and skilled workforce has attracted investment from various countries, while strategic industrial locations and government support have also contributed to the development of this sector. Located in strategic location in a region with high growth and proximity to the giant markets of China and India, Indonesia has become an ideal production center for global footwear brands such as Nike, Adidas, Reebok, and other famous fashion shoes.