An Affirmative Economic Transition to Affect the Indonesian Home Improvements Sector Positively: Ken Research


Home improvement refers to decorating or building small structures that gives enhanced look to an existing home. It includes improvements to lawns, gardens, and outdoor structures, such as gazebos and garages. Home improvements generally include renovations in comfort, maintenance, repair, general servicing tasks, additional space, saving energy, and safety.

Indonesians are fond of home improvements to make their homes more beautiful and showcase their homes to families and friends. Home improvements sector is boosted by the growing population, growth in property industry and desired home furnishings.

The home improvements market is very broad in Indonesia. Mulia, Roman, Satya Langgeng Sentosa and Platinum Ceramics are a few leading players in the home improvements market. Mulia is the leading brand in floor and wall covering industry followed by Roman brand. Mulia targets the middle to upper class consumers and Roman products are of very good quality and at affordable prices. The products covered in the home improvements category are bathroom and sanitary ware, decorating sundries, floor covering, hand tools, hardware, home paint, kitchen sinks, other home improvement, power tools, and wall covering.

Indonesia is the world’s fourth most populous country with above 5000 stores supplying home improvement materials to consumers. The demand for home improvements is rising along with the increase in the consumer spending limit. This encourages the consumers to invest more in home improvements with the growing population demanding for more accommodation.

With more dwellings being built for growing population in and around the major cities of Indonesia, it is expected that there will be excess demand for home improvement supplies. Indonesia’s five year population data is depicted in the graph below.

According to the report, “Home Improvement in Indonesia”, Bandung, Semarang, Surabaya, Medan, Banjarmasin, Makassar, Denpasar and Jakarta are the major cities in Indonesia offering many home improvement stores. Paint, pipes/plumbing and cement products are the most common items in home improvements in the country. Majority of the home improvement supplies stores are one-stop-shop concept that offers various raw materials such as woods, sands, and bricks, apart from the top three products that are paint, pipes/plumbing and cement products. Indonesian home improvement stores in cities such as Medan offer woods, sands and bricks that are available in less quantity. Country’s economic and political instability leads to a slowdown in home and garden improvement products growth. Indonesian government has revised the existing regulations, policies and initiating new ones in the home improvements sector.

In the year 2016, Indonesia’s currency depreciation has affected the sales in the home improvements market. Majority of the leading competitors faced very less profits and started importing finished goods and raw materials from abroad, especially from the US, China and Japan.  This led to increase inflation in the home improvements sector and slowdown in sales of home and garden improvement products.

The home improvements market is very competitive and the country’s economic situation has affected the sales in this sector in the past years. With growing awareness in internet access and technological awareness among the Indonesian population the sales of the home improvement products will surely to grow in the coming years.

According to the latest economic reports, the economic climate in Indonesia is going to improve over the coming years with the improvement in the country’s currency. This improvement will result in lower prices for imported finished goods and raw materials in home improvements sector. The country’s natural resources industry will improve and will cater higher employment rate resulting in higher consumer spending limit. On a whole, the home improvement industry is expected to grow at a rapid rate in the coming years with more demand for innovative home improvement products.

To know more about the research report:

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Ken Research
Ankur Gupta, Head Marketing & Communications
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