economy

Kemenperin: The Opportunities Are Growing, And The Packaging Industry Market Keeps Expanding

The Ministry of Industry (Kemenperin) is actively promoting the growth of the packaging industry, which is one of the sectors experiencing relatively high market growth. The domestic market for packaging products shows great potential, especially since it’s closely linked to the manufacturing sector, particularly food and beverage industries.

Packaging products come in various materials, including paper, cardboard, rigid plastics, flexible plastics, glass, and metal. Currently, flexible plastics dominate the global packaging industry, accounting for 44 percent, followed by paperboard at 28 percent and rigid plastic packaging at 14 percent.

About 70 percent of the paper packaging used by the food and beverage industry, especially in the paper packaging segment, meets food-grade requirements. “This presents an opportunity for containerboard and boxboard paper packaging used in food products,” said Putu Juli Ardika, Director General of Agro Industry at Kemenperin, representing the Minister of Industry during the opening of the ALLPack Indonesia and ALLPrint Indonesia 2024 exhibition in Jakarta on Wednesday (October 9).

Putu also pointed out that several factors influence the growth of the packaging industry, including advancements in packaging and printing technology, aesthetic demands, and the rising need for innovative packaging. “The increased demand for packaged food and beverages, along with the growth of the pharmaceutical industry during the pandemic, has also impacted the packaging and printing sectors,” he noted.

However, the packaging industry faces its own challenges. The bundling of packaging machine sales with raw paper material sales at a single price has hindered the optimal absorption of paper domestically. To address this, Kemenperin is encouraging packaging machine manufacturers to invest or transfer technology to local producers.

Putu is feeling optimistic about the growth of the packaging and printing industry, which he believes still has a lot of potential. “You can see this from the rise in e-commerce transactions, the growing number of product startups, and the way people are shifting towards quick options, leading consumers to packaged food and drinks,” he said.

Additionally, the increasing consumer preference for product durability and protection against contaminants presents a great opportunity for the domestic packaging and printing industry. “The growth of the digital economy and the FMCG (Fast Moving Consumer Goods) sector is also a golden opportunity to boost the packaging and printing business,” he added.

With such high market growth potential, the government sees the need for diversification and innovation in the packaging industry, especially towards eco-friendly packaging. This is part of the effort to develop sustainable business practices and implement circular economy principles (reduce, reuse, recycle, recovery, and repair).

Therefore, Putu hopes that the ALLPack Indonesia and ALLPrint Indonesia 2024 exhibitions will encourage entrepreneurs in the pulp and paper, packaging, and printing industries to collaborate.

“This collaboration is expected to lead to the best business agreements and help participants understand and utilize efficient technologies, creating highly competitive products that contribute to the national economy,” he explained.

The ALLPack Indonesia and ALLPrint Indonesia 2024 exhibition will take place over four days (October 9-12, 2024) and will feature seminars, talk shows, and business matching events specifically designed to connect buyers with exhibitors in the packaging and printing sectors.

Tag: ALLPrint Indonesia 2024 Exhibition Kemenperin Transfer Technology