Indonesia Basic Chemicals Market Report and Forecast 2024-2032

Indonesia Basic Chemicals Market Outlook

The Indonesia basic chemicals market size is projected to grow at a CAGR of 6.80% between 2024 and 2032. The development of the market is driven by the rising utilisation of eco-friendly practices and the surging adoption of automation by chemical manufacturers.

Key Trends in the Market

Basic chemicals are the foundation of the chemical sector and serve as building blocks for various products in multiple sectors. These chemicals have relatively simple chemical structures compared to speciality or fine chemicals. They are produced in large quantities and are essential for manufacturing a wide range of consumer goods and industrial products.

• The Indonesia basic chemicals market growth is being propelled by the increasing adoption of sustainable practices in the chemical sector, driven by rising environmental concerns and the need to reduce carbon emissions. This includes the use of eco-friendly production methods, waste reduction, and the development of bio-based alternatives to traditional chemicals. Indonesia's rich biodiversity offers opportunities for sourcing raw materials for bio-based chemicals.

• One of the major Indonesia basic chemicals market trends includes the increasing adoption of digital technologies and the principles of Industry 4.0. This movement involves the increasing use of automation, data analytics, and the Internet of Things (IoT) to refine operations, amplify effectiveness, and curtail operational expenditures in chemical manufacturing.

• The developing export-oriented agriculture sector and increasing inclination towards chemical fertilisers are expected to aid the Indonesia basic chemicals market demand. Chemical fertilisers are comprised of basic chemicals such as nitrogen, phosphorus, and potassium, which play an important role in plant nutrition.

Moreover, Indonesia is one of the world’s largest producers and distributors of agricultural products such as palm oil, rubber, and cocoa, among others, and with the increasing demand for such products, the usage of basic chemicals is expected to substantially increase throughout the forecast period.

Market Analysis

Based on type, the market is segmented into inorganic chemicals and organic chemicals. The Indonesia basic chemicals market segmentation, on the basis of product, includes ethylene, propylene, methanol, benzene, paraxylene, chlorine, ammonia, and acetic acid, among others. The market, based on application, includes food and beverage, pharmaceuticals, agriculture, building and construction, energy, and pulp and paper, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter’s five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Indonesia basic chemicals market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• BASF SE 

• Solvay S.A.

• Borealis AG

• INEOS Capital Limited 

• The Dow Chemical Company 

• Mitsubishi Chemical Corporation 

• LyondellBasell Industries Holdings B.V. 

• Sumitomo Corporation 

• Eastman Chemical Company

• Asahimas Chemical Company 

• Chandra Asri Petrochemical 

• Others

Market Share by Type

Organic chemicals are expected to account for a substantial portion of the Indonesia basic chemicals market share. Many traditional chemical processes rely on petrochemical feedstocks, which are derived from fossil fuels. These processes can contribute to greenhouse gas emissions, pollution, and resource depletion. Organic chemicals, on the other hand, often use renewable feedstocks and more environmentally friendly processes, reducing their ecological impact.

Market Share by Product

According to the Indonesia basic chemicals market analysis, the demand for ethylene is expected to grow rapidly owing to its importance as a basic chemical in the field of organic chemistry. It is an unsaturated hydrocarbon with the chemical formula C2H4. It is available in a clear and scentless gaseous form that is not visible to the naked eye at room temperature. The chemical is widely used as a plant hormone, helping with making fruits ripe and controlling plant growth.

Competitive Landscape

Solvay S.A. is a well-established multinational chemical enterprise hailing from Belgium. With a rich history dating back to 1863, when it was founded by Ernest Solvay, the company has garnered recognition for its expertise in the realms of chemistry and advanced materials. Since then, it has remained a leader in innovation and industrial progress. With a keen focus on the domains of chemistry and materials science, Solvay’s influence spans over 60 countries globally.

Borealis AG is a prominent Austrian company that operates in the field of petrochemicals, plastics, and innovative solutions. Established in 1994, the company has since made a significant mark in the sector with its forward-thinking approach and commitment to sustainability. The company is renowned for its expertise in producing polyolefins, which are versatile plastic materials used in a wide range of applications, ranging from packaging and automotive components to consumer goods.

INEOS Capital Limited, affiliated with the INEOS Group, is a prominent company in the sector of petrochemical companies worldwide. The INEOS Group has made its mark through a wide array of activities in the chemical field, spanning from producing petrochemicals to crafting speciality chemicals and plastics. Founded by Sir Jim Ratcliffe, the group came into existence in 1998 and has evolved into a significant force within the global chemicals and manufacturing landscape.

Other Indonesia basic chemicals market players include BASF SE, The Dow Chemical Company, Mitsubishi Chemical Corporation, LyondellBasell Industries Holdings B.V., Sumitomo Corporation, Eastman Chemical Company, Asahimas Chemical Company, and Chandra Asri Petrochemical, among others.

Key Highlights of the Report