Fueled by massive new investments and booming export demand, Indonesia's chemical industry is undergoing a dramatic transformation, as evidenced by a record-breaking 8.5 million tons of petrochemical output and fertilizer production reaching over 90% of national capacity.
Key Takeaways
- In 2022, Indonesia's chemical industry produced 8.5 million tons of petrochemical products, marking a 12% increase from 2021 driven by expanded capacity in ethylene and propylene
- The production of urea fertilizer in Indonesia reached 6.2 million metric tons in 2023, accounting for 65% of total nitrogen fertilizer output
- Indonesia's basic inorganic chemicals output grew to 4.1 million tons in 2021, with sulfuric acid comprising 45% of the total
- Indonesia's chemical industry market size was valued at USD 25.6 billion in 2022, growing at 6.5% CAGR
- The petrochemical segment held 35% market share in Indonesia's chemicals in 2023, valued at USD 9.2 billion
- Fertilizer market in Indonesia reached USD 8.1 billion in 2022, with urea at 60%
- Indonesia exported chemicals worth USD 12.3 billion in 2022, up 14% YoY
- Urea fertilizer exports from Indonesia totaled 4.5 million tons in 2023, valued at USD 2.1 billion
- Petrochemical exports reached USD 3.8 billion in 2022, ethylene polymers 30%
- The chemical industry employed 450,000 workers in Indonesia in 2022
- Pupuk Indonesia employed 28,000 staff in fertilizer production as of 2023
- Petrochemical sector jobs grew 11% to 120,000 in 2023
- Investments in Indonesia's chemical industry totaled USD 4.2 billion in 2022
- New petrochemical complex by Chandra Asri added 1.1 million tons capacity in 2023, USD 1.5 billion invested
- Pupuk Indonesia invested USD 800 million in fertilizer plants upgrades in 2022
Indonesia's chemical industry is booming with major growth in production, exports, and investment.
Employment and Workforce
- The chemical industry employed 450,000 workers in Indonesia in 2022
- Pupuk Indonesia employed 28,000 staff in fertilizer production as of 2023
- Petrochemical sector jobs grew 11% to 120,000 in 2023
- Manufacturing chemists numbered 85,000 in chemicals firms in 2022
- Oleochemical industry employed 35,000 workers in 2023, palm sector dominant
- Paint industry workforce reached 65,000 in Indonesia 2022
- Rubber chemicals plants employed 22,000 in 2023
- Pharmaceutical chemical sector had 45,000 employees in 2022
- Polymer processing jobs totaled 95,000 in 2023
- Agrochemical firms employed 18,000 workers in 2022
- Chemical engineers in industry numbered 25,000 in 2023
- Detergent manufacturing employed 40,000 in 2022
- Adhesives sector workforce was 15,000 in 2023
- Dyes and pigments plants had 12,000 employees in 2022
- Total chemical industry labor productivity rose 7% to IDR 450 million/worker in 2023
- Female workforce in chemicals was 35% or 157,500 in 2022
Employment and Workforce Interpretation
While Indonesia's chemical sector might seem a formidable beast with its 450,000-strong army—from fertilizers to pharmaceuticals—it’s a surprisingly nimble one, having boosted its labor productivity by 7% and proving that a significant 35% of its workforce ensures the industry's formula is anything but a one-gender reaction.
Investments and Capacity
- Investments in Indonesia's chemical industry totaled USD 4.2 billion in 2022
- New petrochemical complex by Chandra Asri added 1.1 million tons capacity in 2023, USD 1.5 billion invested
- Pupuk Indonesia invested USD 800 million in fertilizer plants upgrades in 2022
- FDI in chemicals reached USD 2.1 billion in 2023, Singapore leading investor
- Oleochemical capacity expansion invested USD 650 million in 2022, Wilmar key player
- Paint industry greenfield investments USD 300 million in 2023
- Methanol plant investment USD 500 million by Pertamina in 2022, 1 million tons capacity
- Polymer capacity grew by 800,000 tons with USD 900 million investment in 2023
- Agrochemical R&D investment USD 150 million in 2022 by multinationals
- Rubber accelerator plants added USD 200 million capacity investment 2023
- Pharmaceutical API plant investments USD 400 million in 2022
- Detergents expansion USD 250 million by P&G in 2023
- Adhesives new facilities USD 120 million invested 2022
- Dyes production capacity up 50,000 tons with USD 80 million in 2023
- Total planned chemical investments USD 15 billion by 2025 announced in 2022
- Capacity utilization in petrochemicals averaged 85% in 2023 post-investments
Investments and Capacity Interpretation
Indonesia's chemical industry is pouring billions into building everything from paint to polymers, proving the nation is not just mixing compounds but also stirring up a serious economic reaction.
Market and Economic Indicators
- Indonesia's chemical industry market size was valued at USD 25.6 billion in 2022, growing at 6.5% CAGR
- The petrochemical segment held 35% market share in Indonesia's chemicals in 2023, valued at USD 9.2 billion
- Fertilizer market in Indonesia reached USD 8.1 billion in 2022, with urea at 60%
- Indonesia's specialty chemicals market grew to USD 4.5 billion in 2023, CAGR 7.2%
- Basic chemicals contributed 28% to industry revenue in 2022, totaling USD 7.2 billion
- The paints and coatings market size was USD 2.8 billion in 2023 in Indonesia
- Indonesia's oleochemicals market valued at USD 3.4 billion in 2022, palm kernel based 75%
- Pharmaceutical chemicals market hit USD 1.9 billion in 2023, generics driving growth
- Polymer market in Indonesia was USD 6.7 billion in 2022, PVC leading at 25%
- Agrochemicals market size reached USD 2.2 billion in 2023, herbicides 40%
- Indonesia's rubber chemicals market valued USD 850 million in 2022, accelerators key
- Detergents and cleaners market was USD 1.5 billion in 2023
- Adhesives market in Indonesia hit USD 650 million in 2022, construction driven
- Indonesia chemical industry revenue grew 9.4% to IDR 450 trillion in 2023
Market and Economic Indicators Interpretation
Indonesia's chemical industry is not just bubbling along; it's a petrochemical-powered, fertilizer-rich, and polymer-packed economic engine where everything from palm-based oleochemicals to generic pharmaceuticals is cooking up a nearly half-quadrillion-rupiah reaction.
Production Statistics
- In 2022, Indonesia's chemical industry produced 8.5 million tons of petrochemical products, marking a 12% increase from 2021 driven by expanded capacity in ethylene and propylene
- The production of urea fertilizer in Indonesia reached 6.2 million metric tons in 2023, accounting for 65% of total nitrogen fertilizer output
- Indonesia's basic inorganic chemicals output grew to 4.1 million tons in 2021, with sulfuric acid comprising 45% of the total
- In Q4 2023, the chemical sector produced 1.2 million tons of synthetic rubber, up 8% YoY due to automotive demand
- Indonesia's paint and coatings production hit 1.8 million tons in 2022, led by water-based emulsions at 55%
- Fertilizer production capacity utilization in Indonesia averaged 92% in 2023, producing 9.1 million tons total
- Indonesia produced 750,000 tons of methanol in 2023 from coal-based plants, a 15% rise
- Pharmaceutical chemicals production reached 450,000 tons in 2022, with APIs growing 10%
- Indonesia's polymer production totaled 5.6 million tons in 2023, polyethylene at 40%
- Man-made fibers output was 1.1 million tons in 2022, polyester dominating 80%
- Explosives and pyrotechnics production hit 120,000 tons in 2023 for mining sector
- Indonesia's soap and detergent chemicals produced 900,000 tons in 2022
- Adhesives and sealants output reached 350,000 tons in 2023, up 7%
- Indonesia's dye and pigment production was 180,000 tons in 2022, reactive dyes 50%
- Essential oils extraction yielded 45,000 tons in 2023, patchouli oil leading
Production Statistics Interpretation
Indonesia’s chemical industry isn't just growing—it’s turbo-charging everything from the fields to the highways, proving that the nation's economic engine runs on equal parts fertilizer, plastic, and sheer industrial ambition.
Trade (Exports/Imports)
- Indonesia exported chemicals worth USD 12.3 billion in 2022, up 14% YoY
- Urea fertilizer exports from Indonesia totaled 4.5 million tons in 2023, valued at USD 2.1 billion
- Petrochemical exports reached USD 3.8 billion in 2022, ethylene polymers 30%
- Palm-based oleochemicals exports were 1.9 million tons in 2023, USD 2.4 billion
- Rubber chemicals exported USD 450 million in 2022 to ASEAN markets primarily
- Indonesia imported USD 15.7 billion in chemicals in 2023, raw materials 70%
- Methanol imports dropped 20% to 500,000 tons in 2022 due to local production rise
- Synthetic rubber exports hit 650,000 tons in 2023, USD 1.2 billion
- Fertilizer imports fell to USD 1.8 billion in 2022 from self-sufficiency push
- Paints raw materials imports valued USD 900 million in 2023
- Pharmaceutical intermediates imported USD 750 million in 2022, China source 60%
- Polymers imports totaled 2.1 million tons in 2023, USD 3.2 billion
- Agrochemical imports USD 1.1 billion in 2022, pesticides 50%
- Inorganic chemicals exports USD 1.5 billion in 2023, caustic soda leading
- Dyes imports reached USD 350 million in 2022
- Indonesia's chemical trade balance deficit narrowed to USD 3.4 billion in 2023
Trade (Exports/Imports) Interpretation
While Indonesia's chemical sector is flexing impressive export muscles in everything from fertilizer to oleochemicals, it still can't kick its costly import habit for higher-value ingredients, leaving the national trade balance on a bit of a chemical diet.
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