Asia Pacific is by far the largest region in the world, comprising 46% of the value of the global coatings industry – nearly twice the size of the next largest region, Europe, which comprises 25%. Within this, Indonesia is one of the most dynamic and growing markets, driven by an expanding middle-class population, the fast-growing construction sector and ambitious government infrastructure projects. Indonesia’s paint and coatings market grew to almost US$2.5bn in sales revenue in 2019 and sales are expected to expand at a rate of between 6-7% annually in the next five years. Asia Pacific Coatings Show is the leading coatings event in South East Asia and has been firmly established in this market for more than 25 years, making it the perfect event to meet the region’s key decision makers and industry giants.
With demand high and industry growing to meet it, Indonesia’s paint and coatings sector remains promising, with a healthy and rising demand for coatings in the architectural, protective, wood and marine industries. The government has reaffirmed its commitment to large infrastructure projects, with spending expected to reach a total of US$455bn over the next five years, creating many opportunities for coatings companies with a presence in the region.
The current capital of Indonesia, Jakarta, is sinking and so in 2019 the government announced that a new capital city will be built in North Penajam Paser Regency, Kalimantan (Borneo). It is estimated the project will cost Rp466trn (US$32.7bn). Construction of Indonesia’s new capital is set to begin in 2021 and be completed by 2024. The government has said it is looking to team up with domestic and foreign investors for the project, which is intended to be a smart and eco-friendly city
Australian developer Crown Group has unveiled plans for a US$693M luxury waterfront residential precinct on the north Jakarta waterfront. The development will consist of a series of towers and will offer 9000m² of retail boutiques, restaurants and bars, a commercial precinct and more than 2000 luxury homes, as well as its own marina. Building on the 4.7-hectare development site was supposed to commence in 2020 and the first stage is expected to be completed in 2024.
The Giant Sea Wall in Jakarta has been designed to protect the city from rising sea levels and sinking from groundwater depletion. The project will reclaim land and create a new urban centre, including upmarket offices and housing, as well as low-cost housing. The new city could hold up to 2M people and will be built by private partnership investments. The new integrated waterfront city will come complete with toll roads, a railway, and seaport and is expected to be completed in 2025.
Signature Tower Jakarta is a planned 638m tower located in Jakarta’s Sudirman Central Business District. The project has yet to start construction and upon completion, the 113-storey Signature Tower will be the tallest building in Indonesia and one of the tallest in the world. The 360,000m2 project will comprise an observatory at the top level, 25 levels of hotel space, 70 levels of office space, a 10-storey retail podium with a conference centre, restaurants and six levels of basement parking.
Indonesia’s government is planning a further 89 new infrastructure projects following on from the COVID-19 health crisis. Requiring an estimated Rp1.422 quadrillion (approx US$430bn) in investment value, the new projects comprise, amongst others, 15 road and bridge projects; 13 dams and irrigation systems; 12 energy projects; six railway projects; six clean water projects; five airports; five seaports; and five industrial zones.