Packaging Industry in Indonesia
Euromonitor International's Packaging Industry in Indonesia Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.
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Chapters: 5 | Tables: 28 | Publication date: Mar 2007
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Executive summary
Laws on packaging still to be revised and enforced
The current existing laws on packaging in Indonesia are contained within the general legislation regarding food safety, that is the Food Act of 1996. Packaging manufacturers are generally required to consult directly with the National Agency of Drugs and Food Control – BPOM, to determine the correct packaging methods required for each specific consumer goods product. BPOM is working closely with local packaging manufacturers to implement further measures on which pack type material is considered harmful for specific consumer goods products.
Companies’ own initiatives to implement safe environment measures
The Indonesian government has yet to address the issue of waste management, recycling, and safe environment strategies to be imposed on local industries. Throughout the years non-government environmental groups have been actively involved in increasing public awareness on environmental damage done by local industries, putting pressure on companies to implement safe environmental measures to gain public sympathy and trust. The Indonesian government rewards such companies with certification as proof of their efforts and in order to encourage other companies to participate in similar campaigns.
Multinationals emerge with acquisition of local companies
Global packaging manufacturer, Alcan, was the only significant multinational player seen in the overall packaging industry in Indonesia. Under Alcan Packaging Flexipack PT, the company rapidly increased its presence within flexible packaging due to its strategic acquisition of Interkemas Flexipack PT – a subsidiary of leading plastic processing company, Argha Karya Prima Tbk PT. Other multinationals – namely Amcor, Ahlstrom and Rexam Der Kwei – had a comparatively smaller presence with representative offices in Indonesia.
Stiffer competition ahead for flexible packaging manufacturers
With increasing usage of flexible packaging across all consumer goods products, more players are expected to emerge to compete against leading flexible packaging manufacturers in terms of price, quality and service. Due to Indonesian consumers’ low purchasing power, flexible packaging has steadily become an important substitute to higher-priced metal, glass and rigid plastic packaging formats. Leading flexible packaging manufacturers – namely Trias Sentosa Tbk PT, Alcan Packaging Flexipack, and Dai Nippon Printing Indonesia PT – will need to invest further in developing new product formats and designs. They will need to promise lower costs but sustained or higher quality, in order to fare competitively against other emerging players.
Table of contents
EXECUTIVE SUMMARY
Laws on packaging still to be revised and enforced
Companies’ own initiatives to implement safe environment measures
Multinationals emerge with acquisition of local companies
Stiffer competition ahead for flexible packaging manufacturers
MARKET BACKGROUND
PACKAGING LEGISLATION
Laws concerning food packaging and labelling still to be enforced
Mandatory product registration alongside labelling regulations
RECYCLING AND THE ENVIRONMENT
No regulations on waste disposal and recycling
Certificates awarded to environmentally friendly companies
CORPORATE ACTIVITY IN PACKAGING
Local manufacturers dominate the overall packaging industry
Acquisitions and joint ventures with local companies essential for penetration
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
ALCAN PACKAGING FLEXIPACK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 1 Major End-Use Markets for Alcan Packaging Flexipack PT by Pack Type 2005
BERLINA TBK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 2 Berlina Tbk PT: Operational Indicators 2005
Summary 3 Major End-Use Markets for Berlina Tbk PT by Pack Type 2005
CIPTAKEMAS ABADI PT
Strategic Direction
Company Background
Competitive Positioning
Summary 4 Major End-Use Markets for Ciptakemas Abadi PT by Pack Type 2005
DAI NIPPON PRINTING INDONESIA PT
Strategic Direction
Company Background
Competitive Positioning
Summary 5 Major End-Use Markets for Dai Nippon Printing Indonesia PT by Pack Type 2005
DYNAPLAST TBK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 6 Dynaplast Tbk PT: Operational Indicators 2005
Summary 7 Major End-Use Markets for Dynaplast Tbk PT by Pack Type 2005
IGLAS PT
Strategic Direction
Company Background
Competitive Positioning
Summary 8 Iglas PT: Operational Indicators 2005
Summary 9 Major End-Use Markets for Iglas PT by Pack Type 2005
INDAH KIAT PULP & PAPER TBK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 10 Indah Kiat Pulp & Paper Tbk PT: Operational Indicators 2005
Summary 11 Major End-Use Markets for Indah Kiat Pulp & Paper Tbk PT by Pack Type 2005
KAGEO IGAR JAYA TBK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 12 Kageo Igar Jaya Tbk PT: Operational Indicators 2005
Summary 13 Major End-Use Markets for Kageo Igar Jaya Tbk PT by Pack Type 2005
MELINDO DIPTA PT
Strategic Direction
Company Background
Competitive Positioning
Summary 14 Major End-Use Markets for Melindo Dipta PT by Pack Type 2005
MULIA GLASS PT
Strategic Direction
Company Background
Competitive Positioning
Summary 15 Major End-Use Markets for Mulia Glass PT by Pack Type 2005
PELAT TIMAH NUSANTARA (LATINUSA) PT
Strategic Direction
Company Background
Competitive Positioning
Summary 16 Major End-Use Markets for Pelat Timah Nusantara (Latinusa) PT by Pack Type 2005
PURA BARUTAMA PT
Strategic Direction
Company Background
Competitive Positioning
Summary 17 Major End-Use Markets for Pura Barutama PT by Pack Type 2005
SURYA MULTI INDOPACK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 18 Major End-Use Markets for Surya Multi Indopack PT by Pack Type 2005
TRI POLYTA INDONESIA TBK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 19 Tri Polyta Indonesia Tbk PT: Operational Indicators 2005
TRIAS SENTOSA TBK PT
Strategic Direction
Company Background
Competitive Positioning
Summary 20 Trias Sentosa Tbk PT: Operational Indicators 2005
Summary 21 Major End-Use Markets for Trias Sentosa Tbk PT by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Few manufacturers of rigid plastic due to extensive equipment required
Increasing usage of HDPE and PET in dairy food and oils and fats products
Summary 22 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Latinusa PT the only significant player in metal packaging
Summary 23 Major Metal Packaging Manufacturers by Pack Type 2005
FLEXIBLE PACKAGING
More players emerge to meet growing domestic demands
Summary 24 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Three leading players go head-to-head in the declining glass packaging
Summary 25 Ranking of Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Tetra Pak, leader in milk packaging
Summary 26 Share of Major Liquid Carton Manufacturers 2005
PAPER-BASED PACKAGING
Paper-based packaging dominated by numerous small-scale manufacturers
Summary 27 Major Paper-based Packaging Manufacturers by Pack Type 2005
CLOSURES
Dynaplast leads as the country’s largest rigid plastic manufacturer
Summary 28 Ranking of Major Closure Manufacturers 2005