Indonesia Activated Carbon Market Outlook to 2028

Indonesia Activated Carbon Market Overview

The Indonesia Activated Carbon Market was valued at USD 1.98 billion in 2023. This growth is driven by the increasing demand for activated carbon in water treatment, air purification, and industrial processes. The rising environmental regulations in Indonesia have also contributed to the markets expansion, pushing industries to adopt cleaner technologies that involve activated carbon.

Major players in the market include PT. Graha Jaya Pratama Kinerja, PT. Pelangi Chemindo Lestari, and Calgon Carbon Corporation. These companies have established strong distribution networks and are continuously innovating to cater to the growing demand across various sectors. Their investments in research and development are aimed at improving the efficiency and sustainability of activated carbon products.

In 2024, Haycarb PLC launched ACTIVATE, its ESG Roadmap 2030, committing to a reduction in greenhouse gas emissions and an increase in renewable energy use by 2030. This initiative marks a significant step in Haycarb's sustainability efforts, particularly within its Indonesian operations.

The Indonesia, particularly the island of Java, dominates the market due to its high concentration of industrial activities and urban centers, the presence of major industries such as manufacturing, chemicals, and water treatment facilities. The region's availability of raw materials, well-developed infrastructure, and a strong industrial base.

Indonesia Activated Carbon Market Segmentation

The market is segment into various factors like product, application, and region.

By Product: The market is segmented by product into powdered activated carbon (PAC), granular activated carbon (GAC), and extruded activated carbon (EAC). In 2023, powdered activated carbon held a dominant market share due to its widespread use in water treatment and air purification applications. The fine particle size of PAC allows for efficient adsorption of contaminants, making it the preferred choice for municipal water treatment facilities and industrial processes.

By Application: The market is segmented by application into water treatment, air purification, industrial processing, and food & beverage processing. In 2023, the water treatment segment dominated the market with the growing need for clean and safe drinking water, driven by rapid urbanization and industrialization in Indonesia.

By Region: The market is segmented by region into North, South, East, and West. In 2023, the Western region dominated the market due to its high population density, advanced infrastructure, and concentration of industrial activities. The regions strong industrial base, coupled with its strategic location for export activities, makes it a key market for activated carbon manufacturers.

Indonesia Activated Carbon Market Competitive Landscape

Company

Establishment Year

Headquarters

PT. TPC Indo Plastic and Chemicals

1986

Jakarta, Indonesia

PT. Cabot Indonesia

1997

Jakarta, Indonesia

Haycarb PLC

1973

Colombo, Sri Lanka

Donau Carbon Gmb H

1915

Frankfurt, Germany

Kuraray Co., Ltd.

1926

Tokyo, Japan

Haycarb PLC: In 2024, Haycarb PLC introduced a new line of activated carbon products designed specifically for air purification applications. These products feature enhanced adsorption capabilities, making them highly effective in removing volatile organic compounds (VOCs) from indoor air. The companys focus on innovation has enabled it to capture major market share of the air purification segment, positioning it as a leader in the Indonesian market.

Calgon Carbon: Calgon Carbon, a subsidiary of Kuraray, has expanded its virgin granular activated carbon production in the U.S. to over 200MM pounds annually. The company's FILTRASORB activated carbon can achieve non-detect levels of PFOA, PFOS, PFHx S, PFNA and Gen X in drinking water, meeting new EPA guidelines.

Indonesia Activated Carbon Market Analysis

Market Growth Drivers

Increased Industrial Activity: The growth of Indonesias industrial sector in 2024 has significantly driven the demand for activated carbon. The Indonesian Industrial Development Plan aims to establish new industrial estates by 2025, leading to a substantial increase in the requirement for activated carbon in water treatment and emission control applications. The demand for efficient purification solutions like activated carbon is anticipated to rise sharply, particularly in water treatment and air purification sectors.

Rising Demand for Clean Water: The 2024 Presidential Instruction on Drinking Water mandates the acceleration of water infrastructure development in Indonesia, including optimizing 42 newly constructed dams like Cipanas and Jatigede on Java Island. This initiative will increase the demand for activated carbon in water treatment processes, as the government aims to ensure safe drinking water access for over 91% of the population.

Expansion of the Food and Beverage Industry: The food and beverage industry are currently a major contributor to Indonesia's GDP. As of Q1 2023, it accounted for 6.47% of the national GDP, equating to about IDR 328 trillion. This figure is expected to grow, with forecasts suggesting that the F&B sector could contribute around IDR 500 trillion to the GDP by 2024, driven by factors such as population growth and rising purchasing power.

Market Challenges

Lack of Technological Advancements: The Indonesian activated carbon industry faces challenges due to the lack of advanced production technologies. In 2024, it was reported that 70% of local manufacturers are still using outdated production methods, leading to lower efficiency and higher energy consumption. This technological gap has made it difficult for Indonesian producers to compete with international manufacturers who use more advanced and cost-effective production techniques.

Limited Skilled Workforce: The industry is facing a shortage of skilled labor, particularly in advanced manufacturing techniques. In 2024, it was estimated that few of the workforce in this sector is adequately trained in modern production processes. This skills gap has hindered the industry's ability to innovate and improve efficiency, posing a significant challenge for future growth.

Government Initiatives

Incentives for Renewable Energy in Production: The Indonesian government, in 2024, introduced incentives for industries that adopt renewable energy sources in their production processes, including activated carbon manufacturing. These incentives include tax breaks and subsidies for companies that utilize biomass, such as coconut shells, in the production of activated carbon. This initiative aims to reduce the industry's carbon footprint by 2025, encouraging manufacturers to shift towards more sustainable practices.

Infrastructure Development in Industrial Zones: The Indonesian governments 2024 infrastructure development plan includes the creation of 15 new industrial zones by 2025, particularly in regions such as East Java and Central Sulawesi. These zones are expected to house industries that will require significant quantities of activated carbon for water and air purification. The government has allocated IDR 300 trillion for the development of these zones, which is anticipated to drive substantial growth in the activated carbon market.

Indonesia Activated Carbon Market Future Outlook

The future trends in the Indonesia activated carbon industry include a growing demand for sustainable activated carbon, advancements in production technologies, expansion of the air purification segment, and increased investment in water treatment infrastructure.

Future Market Trends

Advancements in Activated Carbon Technologies: The market is anticipated to see technological advancements, particularly in the production of activated carbon with enhanced adsorption properties. By 2028, innovations such as nano-activated carbon are expected to become mainstream, offering higher efficiency in water and air purification applications, thus driving demand in both industrial and residential sectors.

Expansion of the Air Purification Segment: The air purification segment is projected to expand rapidly, driven by increasing urbanization and industrialization in Indonesia. By 2028, the demand for activated carbon in air purification systems is expected to double, with investments in industrial air filtration technologies to comply with stricter environmental regulations. The growing focus on indoor air quality in urban areas will further fuel this trend.
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