Indonesia Basic Chemicals Market Research Report: Growth Prospects and Future Outlook to 2030
The Indonesia basic chemicals market, valued at $17.6 billion in 2020, is projected to nearly double to $35.1 billion by 2030, growing at a CAGR of 7.2%. Growth is driven by rising use of inorganic chemicals in fertilizer production and applications in pharmaceuticals and construction. Organic petrochemicals hold the largest market share, with building & construction as the leading application segment. New chemical formulations present profitable opportunities despite health risk challenges.
According to Allied Market Research, the Indonesia basic chemicals market was worth $17.6 billion in 2020 and is forecast to reach $35.1 billion by 2030, expanding at a 7.2% compound annual growth rate. This growth is fueled primarily by increased utilization of inorganic chemicals in fertilizer manufacturing and broader application in pharmaceuticals and the building & construction sectors. Organic petrochemicals accounted for more than half the market share in 2020 and are estimated to grow fastest at a 7.8% CAGR. By application, building & construction dominated in 2020, representing about one-third of the market, while the energy sector is expected to exhibit the highest growth rate of 8.6%. The B2B sales channel is predominant, generating over 80% of revenue and registering the highest CAGR. Market expansion faces challenges due to health risks associated with inorganic and organic petrochemicals and oleochemicals, yet the introduction of new chemical formulations signals profitable prospects for market players. Key companies operating in Indonesia include PT Asahimas Chemical, PT Mega Chemical Pratama, Chandra Asri Petrochemical, BASF SE, and others. Driving factors also include Indonesia’s status as a major agricultural product producer, increasing the demand for related basic chemicals. The chemical sector's growth is supported by government investment and new large-scale production facilities enhancing upstream chemical capacity, boosting competitiveness, and meeting domestic and regional demand. Overall, the market outlook is positive with innovation, sustainability, and sectoral diversification underpinning future opportunities.
