Jakarta, CNBC Indonesia – The prospects for the national refractory (refractory material) market are very attractive in the next few years, driven by increasing demand for these products from various industrial sectors such as the smelter industry, iron and steel industry, to the petrochemical industry.
Based on research, the refractory market in Indonesia recorded a shipping growth value of 78.34% in 2021 compared to 2020. Refractories are refractory materials used in various industrial furnaces, smelters, kilns, reactors, incinerators, and so on which are exposed to high temperatures. tall.
It is reported that Indonesia is currently still dominated by imported products to meet the increasing demand in the refractory market. The import value of refractory products in 2021 was US$204.63 million, while in 2017 it was US$151.06 million.
The refractory market in Indonesia is expected to record a CAGR of 4.3% during this period (2020 ~ 2026). Increased iron and steel production coupled with increasing demand for energy conservation has been identified as one of the main drivers of the growing refractory market in Indonesia.
However, the President Director of PT Benteng Api Technic (BAT Refractories) Ridwan emphasized that the Indonesian refractory market is currently still dominated by imported products, especially from China, South Korea, Thailand, Australia, Japan and others.
Ridwan continued, that the potential need for refractory and insulation products will continue to increase in line with government policies regarding restrictions on exports of mineral raw materials which have spurred the emergence of various smelter industries, such as Nickel Smelter, Alumina Smelter, Cooper Smelter and other supporting industries.
The construction of the IKN project will also greatly increase the need for iron and steel in Indonesia, thereby increasing the need for refractories in various iron and steel processing industries.
Looking at these data, Ridwan stated that the demand for refractory and insulation products in Indonesia in the future will be even greater, while there are still relatively few local companies operating in this field. One of them is BAT Refractories as a local company and pioneer in the refractory industry which is ready with the various resources it already has.
“In line with that, BAT Refractories will continue to develop various facilities and various Company resources to continue to increase the capacity, quality and competitiveness of its products and services so that it can take over the national Refractories market which is still dominated by imported products, and expand even wider to the international market,” said Ridwan in an official statement, Thursday (2/5/2024).
Ridwan added that the growth in demand for products and services in the refractory and insulation sector is also expected to continue to increase, following the growth of various domestic industries such as the smelter industry, cement industry, power generation industry, iron and steel industry, fertilizer and petrochemical industries, oil and gas industry, food and beverage industry, and others.
This is because refractory products are a vital part in the operational process of an industry whose production process requires heat and energy.
“The government's policy of implementing TKDN also provides greater opportunities for local Indonesian producers to contribute more to meeting domestic refractory needs, including BAT Refractories,” he said.
[Gambas:Video CNBC]
Next Article
Spooky! 'Ghost factory' haunts Jakarta, how come?
(ayh/ayh)