Indonesia Ceramic Tiles Market- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Indonesia Ceramic Tiles Market- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Indonesian Ceramics Tiles Market is expected to register a CAGR greater than 4%.

The ceramic tiles market, which is one of the leading variants of the flooring market, has suffered several setbacks during 2020 due to the sudden COVID-19 pandemic. Indonesia was one of the worst-hit markets due to the virus outbreak, which resulted in a shortage of finished tiles in the market. However, the construction sector, which is the key market for ceramic tiles, has also been suffering due to COVID-19, which is affecting the ceramic tiles market with revenue losses.

The industry in Indonesia is projected to witness substantial growth over the next few years, owing to significant growth of the medical and housing, and construction industries. The number of construction projects is on the rise, owing to the demand for residential infrastructure and renovation of existing buildings.

Indonesian ceramic tiles have advantages, such as unique designs and natural raw materials, which are supported by the digital printing concept to produce quality ceramic tiles, and are widely known in the international market, especially in ASEAN. Indonesia has huge capital in the ceramic tile industry, with sufficient technologies and factories, which are capable of producing ceramic tiles to meet demands both at domestic and international levels.

Manufacturers are producing made-to-order ceramic tiles, based on orders from foreign buyers, so the tiles have unique designs. Indonesian ceramic tiles have been exported to various countries, especially in Asia as the main market, while the European markets have also shown interest. In September 2018, the Indonesian government decided to impose higher import tariffs on ceramics, as well as, on various other products, to curtail imports to improve Indonesia’s current account deficit and strengthen the value of the rupiah.

Moreover, a special regulation issued by Indonesia’s Finance Ministry for import tariffs on ceramic tile products, which may be put in place for three years, was issued on September 19, 2018. Based on this regulation, a 23% import tariff is imposed on ceramic tile imports during the first year. In the second year, the tariff is reduced to 21%, while in the third year, the tariff drops further to 19%. The regulation aims at curbing the huge inflow of ceramic tiles into Indonesia, which undermines the success of the domestic ceramic industry in Indonesia.

The demand for ceramic tiles has witnessed steady growth since 2009. However, in Indonesia, the demand went down for a few years when the growth of real estate construction was sluggish. Almost all ceramic tiles produced in Indonesia are consumed domestically, with minimal imports or exports. Local manufacturers now satisfy 90% of the domestic consumption, with international competitors making up the remaining 10%, mostly from China.

Indonesia is urbanizing rapidly, with the urban share of the population being around 57.3 % in 2021. Urbanization in Indonesia is mainly due to the expansion of cities and the migration of people. Investments are made in housing, road network, urban transport, water supply, power-related infrastructures, smart cities, and other forms of urban management. Urbanization boosts the demand for residential and commercial construction markets in the country, which has fueled rapid growth for the Indonesian ceramic tiles market. Indonesia is witnessing absolute growth in the urban population, owing to the growing income levels of the middle-class and stable democracy. Moreover, people are migrating to the urban area every year in Indonesia, which is expected to form new cities with more population.

The report covers major international players operating in the Indonesian ceramic tiles market. In terms of market share, a few of the major players currently dominate the market, namely Platinum Ceramics Industry, PT Arwana Citramulia TBK, PT Keramika Indonesia Assosiasi (KIA), PT Muliakeramik Indahraya, PT Roman Ceramic International. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

• The market estimate (ME) sheet in Excel format
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