Chemical

• 
  Head of Working Group
  Erike Yanidia
  Regulatory Management & Trade Compliance Manager - Merck
• 
  Deputy Head
  Haqiki Aplesiasfika
  EH&S Product Regulatory Specialist - Dow Indonesia

About the Group

The Chemical sector is essential in the manufacturing hierarchy as it supports all sectors of the economy and acts as a catalyst in generating a trickle-down effect to downstream industries by creating jobs and supporting industrialisation. It is the first building block of the modern economy, as well as the first link in the value chain of a vast majority of manufacturing companies. Since the mid-1980s, the global Chemical industry has grown by 7% annually, driven by Asia and its integration of regional economies and its population (workforce and consumers). With the rise of consumer purchasing power, more chemical products are in demand as a result of the boost in consumer goods demand.

The Chemical sector in Indonesia has become a focus priority in the past few years, with the government aiming to achieve industrial selfsufficiency and thus necessitating a strong upstream sector, particularly for petrochemicals. Indonesia’s Chemicals market generated total revenues of $18.6bn in 2016, representing a compounded annual growth rate (CAGR) of 2.3% between 2012 and 2016. Bucking the global trend, it is dominated by specialty chemicals; however, commodity chemicals comprise a large share of the market.The European Chemical sector is one of the most internationally competitive and successful industries. With its continuous growth, it reached 20% of worldwide chemical industry sales in 2014, making it the second largest industry in the world. This figure keeps growing to date as the European Chemical industry continues to be a world-leading and highly innovative sector.

The EuroCham Indonesia Chemical Working Group consists of European giants in the chemical sector that have a presence in Indonesia. Currently the group hosts 29 companies, with 19 chemicalsector-relevant companies and another 10 companies from related businesses or interests.

Throughout 2017 alone the group continued its regular meetings on a bi-monthly basis, and closely monitored issues related to draft implementation regulations of Halal Law, import provisions related to chemical products, the Draft Government Regulation on Hazardous and Toxic Material Management (RPP B3), the National Industry Master Plan (RIPIN) and the changes of the HS Code through the issuance of BTKI 2017.

In the following year the group agrees to keep its current leadership for another period. Priority issues include implementing regulations of Halal Law, the Draft Regulation on Hazardous and Poisonous Substances, and the close following of Industry 4.0 planning that includes the Chemical sector as one of the priority sectors. Activities considered priority are the outreach to the DG Chemical Upstream, Ministry of Industry, and the Federation of the Indonesian Chemical Industry (FIKI), particularly to advocate the unique position of the Chemical industry as its raw materials should consider the global supply chain and benefit the local industry development.