INDONESIA PAINTS AND COATINGS MARKET

Indonesia paints & coatings market is forecast to grow at robust CAGR of 6.3% between 2025 and 2032 primarily driven by the large population size, government continued focus on manufacturing and infrastructure projects throughout the country and a thriving automotive industry.

Major Market Drivers and Emerging Trends

Propelled by the growth in construction and automotive industries, the market growth is reinforced by the ongoing urbanization and an increasing number of infrastructure projects which drive up the need for paints and coatings for various applications. The government’s plan to build two million houses annually in rural areas to meet the housing needs of low-income citizens is projected to significantly boost the need for paints and coatings in the years ahead. Indonesia is also set to invest around USD 40 billion in expanding metro network in Jakarta which will significantly support the construction industry growth. The country has further set its sights on more than USD 400 billion in upcoming building projects including 25 new airports and power plants.

Indonesia is further pushing forward with various infrastructure initiatives in the new capital city. The new capital has seen the completion of key infrastructure including the State Palace and government offices along with other vital facilities. These developments will be complemented by the enhancement of smart cities along with the growth of investment and production capabilities in economic clusters. The concluding phase will aim to enhance its status as a world-class city with the development of integrated public transportation systems including roadways and rail networks in the new capital along with the adjacent areas. These extensive developments will further propel the need for paints and coatings in various sectors thus driving market growth.

The other factor supporting a positive trend in Indonesia paint and coating market outlook is the thriving automotive industry. An increase in vehicle ownership is directly related to the growing need for automotive coatings. Indonesia is the second biggest automotive manufacturer in Southeast Asia after Thailand. In 2023 the country produced around 1.18 million passenger cars which reflects a substantial growth from about 551 thousand in three years prior which boosts the need for automotive coatings. Ongoing investments from key global automotive manufacturers are also likely to maintain steady demand for automotive coatings in the future.

The growing number in motorcycle ownership is also a significant contributor to the demand for automotive paints. Motorcycle fleet in Indonesia hit 132 million in 2023 which makes it among the largest globally. Metal coatings are critical in the manufacturing of cars and motorcycles. Consequently, the automotive sector growth will drive further demand for these coating materials.

The rising need for maritime and protective coatings is also set to fuel market growth in the coming years. The marine coatings industry in Indonesia is set for significant growth bolstered by its 54,720-kilometer coastline and supportive government policies. There is also the opportunity to develop a thriving shipbuilding sector which makes it a highly competitive space in the near future. The government has also adopted the International Convention on the Control of Harmful Anti Fouling Systems on Ships that requires vessels to adopt anti fouling paints. This could create a need for replacement coatings as the shipbuilding sector in the country expands alongside its marine logistics goals.

Based on resin type, acrylic resins have seen a notable rise driven by the frequent application of acrylic coatings on exterior building surfaces. The coatings industry relies heavily on acrylic resins to deliver excellent performance, extended durability and visual appeal in numerous paint applications. Their exceptional properties basically make them irreplaceable in many fields.

Based on technology, waterborne coatings are gaining popularity because they offer superior adhesion when sprayed directly onto surfaces in various environments. Waterborne coatings are versatile as they allow for easy pairing with other products including being overcoated with solvent-based paints. In solvent-borne coatings, liquefying agents evaporate due to an oxidative reaction with the air speeding up the process and shortening drying time. Additionally, these coatings offer better stability against environmental variables like humidity or temperature during curing in comparison to their waterborne counterparts.

Based on end-use industry, the architectural segment is set to expand rapidly fueled by the booming residential market. The surge can largely be credited to government strategies designed to tackle the housing challenges posed by the expanding population. Furthermore, with a growing economy along with the purchasing power, consumers are becoming more selective and are now more inclined to invest in premium paints especially for homes and commercial properties rather than just opting for cheap options which further drive segment growth.

Top Market Players

Several major companies in the market include PT Propan Industrial Coating Chemicals (Propan Raya ICC), AkzoNobel Indonesia, PT Kansai Paint Indonesia, TOA Group, Kansai Paint, Propan, Nippon Paint, Dulux among others. These leading companies have established themselves in the market and deliver innovative products to serve the needs of various sectors.

Key Developments

• • In 2024 AkzoNobel started manufacturing powder coatings at its production plant in Cikarang. This development marks a key expansion for AkzoNobel in Indonesia as it advances from distribution to the production of greener powder coatings.
  • In 2024, the new recycled paints from Mowilex were introduced as it reduces water usage and lowers the carbon emission of each 2.5-litre pail by up to sixty percent. Mowilex Recycled contains up to forty percent premium paint for each container which helps to minimize waste without sacrificing quality.

Segments covered in the Report:

The Indonesia Paints and Coatings Market has been segmented on the basis of Resin Type, Technology, and End-use Industry. Based on the Resin Type, the market is segmented into Acrylic, Alkyd, Epoxy, Polyester, Polyurethane, and Others. Based on the Technology, the market is segmented into Water-borne Coatings, Solvent-borne Coatings, Powder-based, and Others. Based on the End-use Industry, the market is segmented into Architectural and Industrial. The Architectural segment is further segmented into Residential and Non-Residential. The Industrial segment is further segmented into General Industrial, Protective, Automotive, Wood, Marine, Packaging, and Others.

Market Segmentation

Indonesia Paints and Coatings Market by Resin type

• • Acrylic
  • Alkyd
  • Epoxy
  • Polyester
  • Polyurethane
  • Others

Indonesia Paints and Coatings Market by Technology

• • Water-borne Coatings
  • Solvent-borne Coatings
  • Powder-based
  • Others

Indonesia Paints and Coatings Market by End-Use Industry

• • Architectural
    • Residential
    • Non-Residential
  • Industrial
    • General Industrial
    • Protective
    • Automotive
    • Wood
    • Marine
    • Packaging
    • Others

Indonesia Paints and Coatings Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • PT Propan Industrial Coating Chemicals (Propan Raya ICC)
  • AkzoNobel Indonesia
  • PT Kansai Paint Indonesia
  • TOA Group
  • Kansai Paint
  • Propan
  • Nippon Paint
  • Dulux