The industry of paints and coatings in Indonesia has a relatively robust market in Indonesia. This condition is demonstrated with Indonesia’s position as the biggest market for paints and coatings in Southeast Asia. During the period of 2014 – 2019, the industry of paints and coatings in Indonesia grew at the rate of 6% annually. This growth is resulted from business activities that are performed by 150 paint manufacturers in Indonesia with production capacity reaching 1.5 million MT annually in order to fulfil dominating domestic demands amounting to 1.1 million MT annually. Based on such market data, players within the industry of paints and coatings in Indonesia view the market for paints in Indonesia to be classified as dynamic with the estimation of reaching compound annual growth rate (CAGR) at the rate of 10% with decorative paints act as the highest contributor toward such growth estimation.
Furthermore, Law Number 7 of 2014 on Trade (Law No. 7 of 2014) mandates the regulation on prohibition or restriction of trading of goods and/or services under Presidential Regulation (PR). The PR on prohibition of trading of goods may be implemented for the prohibition of trading of lead paints.
Concerning the drafting of PR, Ministry of Trade and Ministry of State Secretariat are authorized to propose the formulation of draft PR on Prohibition of Trading of Goods, especially regarding the Prohibition of Trading of Lead Paints. This Policy Brief will breakdown the urgent need for prohibition of lead paints in Indonesia, and the available option of addressing this prohibition under the instrument on prohibition of trading of goods and/or services.