MOSCOW (MRC) -- Indonesia's plastic manufacturers expect their combined turnover next year (2016) to reach Rp 130 trillion (USD 9.4 billion), up 17 % from an estimated Rp 111.6 trillion this year (2015) on the back of rising demand, reported GV.
Budi Susanto Sadiman, deputy chairman of the Aromatic Olefin and Plastic Industry Association (Inaplast), said manufacturers eyed a 6% increase in terms of volume, from 4.65 million tons this year (2015). Members also expect a 10 % increase in prices next year (2016) to account for rising costs, he said.
Economic growth is set to rebound to 5.3% next year, from 4.8 % this year, on the back of the government's economic stimulus packages which are expected to boost investment and household spending, and in turn increase purchasing power.
"Demand will rise, because the industry is also experiencing an increase in sales of products, especially in the food and beverage sector, as well as agribusiness," Budi said in a recent interview. The plastics industry's turnover will also be driven by higher selling prices, as manufacturers anticipate higher prices of oil - the raw material for plastics," he said.
As MRC wrote before, Saudi Arabia and Indonesia are near an agreement to build their first jointly-owned refinery in the Southeast Asian country, according to Indonesia’s Energy Minister Sudirman Said. The refinery is tentatively planned to have capacity of 300,000 bpd.
MRC