1. Due to the country's increasing urbanization and industrialization, the Indonesia Plastic Pipes Market expanded at a CAGR of 5.1% between 2017 and 2022.
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Plastic pipes are less expensive to transport, handle, and manufacture than other materials like steel, the revenue of the plastic pipes market increased from 2017 to 2022. The reduced weight of plastic pipes makes them easier to handle and install than other materials. In addition, as the nation's urbanization and industrialization developed, plastic pipes saw a surge in use. Also, customers were prepared to spend money on new plumbing or piping replacement in order to guarantee a constant and uninterrupted supply of water for irrigation and residential projects resulting in an increase in the need for plastic pipes.
2. The need for plastic pipes is being driven by an increase in residential construction projects, investments in water supply systems, and regularization of sewage systems.
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The rapid population growth and high urbanization in Indonesia has led to an increase in property prices and demand, making the real estate market one of the most successful sectors in the country. It increases demand for the sewage system, water supply, and power. Also, the Indonesian government is working to make it easier to acquire clean water. The Ministry of Public Works and Housing (MoPWH), National Development and Planning, and WHO Indonesia worked together to resolve water-related concerns. In addition, Indonesia is one of the biggest producers and exporters of agricultural goods in the world, providing the rest of the globe with vital products including palm oil, natural rubber, cocoa, coffee, rice, and spices. The need for plastic pipes comes from the agricultural sector. The creation of new sewage projects is also helping in the improvement of the nation's sewage system. Indonesia will see the construction of the Jakarta Sewerage System (JSS) by the DKI Jakarta Provincial Water Resources Service in 2023.
3. High demand for high-quality products, intense rivalry and reliance on imports are just a few of the obstacles faced by the Indonesian plastic pipe market in 2022.
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Plastic pipe manufacturers must ensure that they provide the best quality products to their customers, which forces them to select the right sized pipes that can be used by the customers most of the time. High-quality plastic necessitates complex manufacturing processes at a high cost. Furthermore, with over 55 such manufacturers in the country, plastic pipe manufacturers in Indonesia face a difficult task of standing out from the competition. These pipes can deliver the best quality and that is why manufacturers need to make sure that they stay ahead of their competitors by manufacturing the best quality of products for their customers. Furthermore, Indonesia’s plastic sector still relies on imports to meet approximately 40.0% of the raw material demand. Import products may face certain challenges like delivery delays, problems with paperwork, products not handled appropriately. These challenges are typically the result of poor supply chain management.