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Indonesia’s packaging sector: Ramadan will boost demand

by ChemOrbis Editorial Team - content@chemorbis.com
  • 29/05/2015 (17:39)
According to local media reports, the Indonesia Packaging Federation said that the packaging sector hopes that the upcoming Ramadan will provide a boost to demand, which underperformed in the first quarter due to depressed consumer purchasing power.

The Chief of the Indonesia Packaging Federation, Hengky Wibowo, reportedly stated that in the last few weeks, production in the packaging sector has increased in line with efforts to secure inventory for food manufacturers ahead of Ramadan, adding that higher demand will enable utilization rates to improve and that average utilization rates of packaging manufacturers currently stands at around 80%.

According to Wibowo, growth in the packaging sector declined 30% in the first three months when compared to same period last year. The productivity of the domestic industry, meanwhile, is also hampered by the high cost of logistics and transport, which currently account for around 18% of production costs. According to market players, Indonesia’s packaging sector will grow by 6-7% this year after expanding around 9-10% last year.
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