Indonesia ranks among the top five tile markets worldwide. To meet the strong demand, Sika has now increased the production capacity at its Bekasi plant, which first opened in 2019. The expanded facility has state-of-the-art production lines and increased storage capacity, and also serves as a distribution hub in the country. Currently, Sika has more than 600 employees and four mortar plants in Indonesia, with Bekasi being the largest.

"The significant expansion of our supply chain in Indonesia enables us to better meet the strong demand in one of the most dynamic markets in Southeast Asia. It also positions Sika for further growth in this important market, driven by rapid urbanization and strong population growth." Philippe Jost, Regional Manager Asia/Pacific.

Being the fourth most populous country, with nearly 60% of the inhabitants living in urban areas, Sika has tripled its network of distributors in Indonesia. As of 2024, the company sells its products through 30,000 points-of-sale across the country (2022: over 10,000 points-of-sale). This successful business model is also being rolled out in other major markets, such as China and India.

Investments in the Indonesian Construction Industry

In 2024, the construction market in Indonesia is estimated at over CHF 240 billion, and is forecast to grow at a CAGR of 6% until 2028. In September 2023, the government approved investments in infrastructure projects equivalent to CHF 25 billion. Moreover, the country is investing in green transition, planning to increase the share of renewables in the energy mix from 12% in 2022 to 40% by 2030.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (RM)