Indonesia Sourcing: Gift packaging 2018

Indonesia Sourcing: Gift packaging 2018

In Indonesia Sourcing: Gift packaging 2018, buyers can find:

Verified exporters – 18 featured suppliers offering various gift packaging

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – Indonesia-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Indonesia Sourcing: Gift packaging 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia exported $251.5 million worth of paper and wooden packaging in 2016, according to the DESA/UNSD, United Nations Comtrade database.

  • Indonesia is the ninth largest producer of paper pulp globally.

  • Membership of the Indonesian Packaging Federation indicates there are more than 5,000 suppliers in the industry.
  • Paper and pulp are the main materials used.

  • Production processes are mainly done in-house.

  • Prices depend on the material and design of the product.
  • Eco-friendly models will become more popular.

  • Indonesia gift packaging suppliers have an optimistic outlook on export sales for the next 12 months.

  • Most surveyed suppliers will be increasing quotes in the next six months.

Indonesia Sourcing: Gift packaging 2018 Suppliers & products

Indonesia Sourcing: Gift packaging 2018

Indonesia Sourcing: Gift packaging 2018

• Gift bags • Gift boxes

Our team has visited all Indonesia manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Gift bags   
Indonesia-gift-packagingIndonesia-gift-packagingIndonesia-gift-packagingIndonesia-gift-packaging
Gift boxes   
Indonesia-gift-packagingIndonesia-gift-packagingIndonesia-gift-packagingIndonesia-gift-packaging
Indonesia-gift-packagingIndonesia-gift-packagingIndonesia-gift-packagingIndonesia-gift-packaging

Indonesia Sourcing: Gift packaging 2018 Industry overview

Indonesia Sourcing: Gift packaging 2018

Indonesia Sourcing: Gift packaging 2018

• Gift bags • Gift boxes

This section discusses key issues affecting export manufacturers in Indonesia, offering insight into industry composition and important supply centers.

Indonesia gift packaging exportsCompetitive advantagesChallengesIndustry composition
  • Exports of gift packaging are on a downward trend.

  • Indonesia sent abroad $251.5 million worth of paper and wooden packaging in 2016, according to the DESA/UNSD, United Nations Comtrade database.

  • The top importers in terms of value were the US, Australia, Vietnam, Japan and Singapore.

  • Indonesia is the ninth largest producer of paper pulp globally.

  • The success of Indonesia's pulp and paper industry comes on the back of ever-increasing global demand for paper.

  • A large pool of skilled workers is also aiding makers to reach more buyers.

  • Entering new markets is a major challenge for the industry.

  • High raw material costs are among the factors making it difficult for many suppliers.

  • Companies have outdated machinery that affects companies’ production.

  • Membership of the Indonesian Packaging Federation indicates there are more than 5,000 suppliers in the industry.

  • East Java, West Java, Jakarta and Yogyakarta are among the key production hubs for packaging.

  • Small and midsize operations account for the majority of suppliers.

The Indonesia gift packaging industry is facing several government-mandated regulations and policies aimed to elevate the sector’s global competitiveness.

In response to stricter export packaging standards applied by developed countries, the Ministry of Industry is training 24 packaging houses in 22 provinces under the local government management. These packaging houses will operate as the center of information and services for small and medium enterprises (SMEs).

In addition, the Ministry will also release the “Guidebook for Package Development,” which is expected to become a reference for stakeholders, especially for small packaging industry managers who have been established to serve and assist SMEs. Prior to that, the Ministry had formed the Packaging Design and Brand Development Clinic since 2003, which facilitates SMEs in improving their packaging quality. So far, the Ministry has produced 6,998 packaging designs and 7,396 brand designs, and assisted 351 SMEs, based on official data.

Meanwhile, the implementation of the mandatory Indonesian National Standard for carton food-packaging products is expected to start this year, although it is not legally binding and there is still no final effectivity date. However, in preparation, the government is reviewing the private sector’s capacity to provide certification for packaging products while waiting for the readiness of SMEs.

Another regulation that the packaging industry must address is proper waste management. The Ministry of Environment stated that the total amount of Indonesia’s waste in 2019 would reach 68 million tons. Most of this waste are likely wrapper and packaging materials, where plastic waste is estimated to reach nearly 10 million tons or 14 percent of total waste. As a result, the Ministry has established the National Waste Steering and Advisory Board to give advice, improve communication and advocacy, and prepare monitoring instruments.

Indonesia Sourcing: Gift packaging 2018 exports

Suppliers are implementing various strategies to become more competitive and expand market reach. Efforts include adopting traditional elements into modern designs and blending aesthetics and functionality. Companies are also investing in online marketing.

Exports

Exports of the Indonesia packaging and tissue paper industries are expanding, and domestic output is sent to heavily populated countries such as China and India. Paper exports increased nearly 10 percent year over year, to $3.1 billion from $2.8 billion during January-October 2017, according to the Indonesian Pulp and Paper Association.

Statistics from the DESA/UNSD, United Nations Comtrade database show packaging exports made of paper, paperboard, wood and leather amounted to $251.5 million in 2016. Covering products exported under HS codes 420291, 4420, 4805 and 4819, the value represents drop of 45.2 percent. The US is the largest foreign market for Indonesia packaging, comprising 34 percent of total export value, followed by Vietnam (7%) Australia, (6%), Japan (6%) and Singapore (5%).

Data from the Ministry of Industry in 2016 showed exports of paper and paperboard boxes and pouches surged around 34 percent, while shipments of cartons and boxes decreased 3 percent. Only a fraction (3%) of local packaging are sent overseas.

Recently, the local packaging industry has been exploring developing markets. In March 2017, Indonesia sent carton packaging products worth $100,000 to Saudi Arabia courtesy of Packaging House, a partner company of the Indonesian Consulate General in Jeddah, which specializes in packaging and labeling, according to the director of Indonesian Trade Promotion Center in Saudi Arabia. The Ministry of Trade forecasts that the luxury product market will be a major contributor to the growth of Indonesia packaging shipments, which are estimated to reach 19 percent of export share value in 2019 worth $17.7 billion. The annual growth of packaging demand in Asia Pacific, and Central and South America are anticipated to reach 6 percent and 9 percent, respectively.

Local trade associations such as the Indonesian Packaging Federation are supporting the industry by providing information, networking, business matching, education and training, workshops, factory visits, technology development, industry progress, and updates on environmental and other related policies and laws to producers.

Competitive advantages

Gift packaging suppliers in Indonesia consider a large number of suppliers and local availability of raw materials as the industry’s major advantages. There are more than 80 paper and pulp manufacturers in Indonesia, making the country the ninth largest producer of paper pulp in the world, not to mention these producers’ easy access to alternative raw materials such as rattan, pandan, mending, water hyacinth, abaca, and bamboo, according to investment company Indonesia Investments.

The success of Indonesia’s pulp and paper industry comes on the back of ever-increasing global demand for paper. The 2017 target was to raise capacity from 7.9 million tons per year to 10.5 million tons. Based from an official statement from the director of Forestry and Plantation Manufacturing at the Ministry of Industry, this number is expected to stay flat for 2018 at around 10.3 million tons.

Another strength that buoys the sector is a large pool of skilled workforce. In July 2017, Indonesia’s population hit over 267 million, with nearly 132 million in the labor market, according to the Indonesian Central Bureau of Statistics. Only 5.3 percent of the workforce are unemployed. This development benefits the packaging industry, as it doesn’t require highly trained manpower. In an interview with a packaging supplier, UD Kemajuan, the owner said that he recruits workers who are willing to work, and they eventually master their jobs in the process.

Challenges

A number of hurdles face the Indonesia gift packaging industry. First of these is the challenge of penetrating more developed markets due to these countries’ stringent standards. The rising costs of raw materials add to the challenge. Supplier UD Kemajuan said that raw input prices keep increasing every year; hence, the production expenditure also surges. Further, procuring the main raw components, pulp and paper, has not been maximized due to controversial legal policies on industrial timber plantations in Indonesia. The local pulp and paper industry has been receiving plenty of criticism for its negative impact on the environment, which has led to the government imposing a moratorium in 2016 on land clearing in peatland areas called Peat Ecosystem Protection and Management Regulation. To address these growing environmental concerns, some suppliers are experimenting with alternative organic components such as seaweed.

Outdated technology is another issue that the packaging sector has to address. To cater to the various customer requirements and demands, printed packaging suppliers have to be equipped with the latest digital trends. However, the use of updated machineries requires special skill and higher investments.

Industry composition

According to the Indonesian Packaging Federation, they have around 5,000 member companies representing various packaging segments such as glass, plastic, pulp and paper, metal, woven polyolefin, and corrugated cardboard.

There are no available official industry data for gift packaging, although suppliers have provided rough estimates. Small companies are usually smaller than 500sqm and have less than 10 employees. They produce cartons and paper packaging. Monthly output is fewer than 1,500 pieces, with annual export sales below $10,000.

With factories ranging from 500sqm to 1,000 sqm, midsize producers normally have up to 100 workers. They make wrapping paper, gift boxes, and paper bags. Overseas shipments can reach up to $100,000.

Larger companies, with a workforce of more than 100 and plants exceeding 1,000sqm, can manufacture more than 15,000 pieces monthly. They are capable of creating highly customized gift packaging. Annual export earnings are higher than $100,000.

Suppliers included in the report are mostly based in East Java, West Java, Jakarta and Yogyakarta.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the gift packaging suppliers featured in this report.

Indonesia gift packaging Industry Overview Locations Map

Indonesia Sourcing: Gift packaging 2018 Product features

Indonesia Sourcing: Gift packaging suppliers and products

Indonesia Sourcing: Gift packaging 2018

• Gift bags • Gift boxes

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Indonesia gift packaging suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • Paper and pulp are the main materials used; however, rattan and water hyacinth are also available.

  • Suppliers typically stick to plain models to cater to more buyers.

  • Suppliers will be adopting environment-friendly materials in upcoming models.

  • Production is semi-mechanized.

  • Production processes are mainly done in-house.

  • Lead time is typically 15 days.

  • Prices depend on the material and design of the product.

  • Size is also a determinant of product price.

  • Models with more embellishments are generally priced higher than plain designs.

Materials & designs

Indonesia gift packaging suppliers mainly focus on paper and pulp as primary materials – although other components are available such as rattan and hemp – due their abundance and flexibility.

In terms of design, companies often stick to plain models in order to cater to the needs of most wholesale buyers. However, local manufacturers can create customized styles. Samples are available within 15 days.

Manufacturing & QC

Production steps for gift packaging include cutting the paper, folding the cardboard and adding trimmings and finishings. Most of these processes are done in the enterprises’ workshops and are rarely subcontracted, if even. Majority of manufacturing steps are done by hand, except for cutting the paper and cardboard, which is performed using cutting machines or papercut presses.

Since most designs are simple, QC is often done by making sure that the sample matches client specifications. This is usually performed by the owners themselves. Lead time is within 15 days.

Pricing

Recently, the cost of paper has been increasing due to the government’s moratorium on industrial timber plantations. This has been hindering paper production on a large scale and has resulted to higher expenditure for paper.

Other factors that affect pricing include design complexity and product novelty, which would often require longer working hours and higher skills. Peak seasons and holidays also affect quotes, with manufacturers paying workers extra to complete large orders or report during special holidays and events.

Gift boxes made of hardboard and synthetic leather are sold for less than $10. Taller versions with glass windows are priced higher.

Gift bags made of paperboard with simple designs and less than 20cm height are available for less than $2. The selection between $2 and $5 includes bags at least 25cm tall and feature different patterns. Higher up the price ladder are versions made of fabric and feature more trimmings.

Wrapping paper with plain or minimal designs are available for less than $1 per 30x30cm sheet. Pieces offered above this quote feature thicker paper with more trimmings and design options.

Price guide

Price guide: Gift boxes
Less than $10
Box; hardboard and synthetic leather; glossy finish; 16x10x10cm; in simple designs
$10 to $15
Box with two drawers; glass window; hardboard and synthetic leather; glossy finish; 35x17.5x16cm
More than $15
Box with two drawers or two layers; glass window; hardboard and synthetic leather; glossy finish; 35x20.5x23cm

Click image to enlarge.

Indonesia gift packaging product features typical components of a gift box

Price guide: Gift bags
Less than $2
Paperboard; matte or glossy finish; 20x30x5cm; embossed, hot stamped or four-color printed pattern finishing; square or rectangular
$2 to $5
Paperboard with fabric cover; 25x35x5cm; ribbon trimmings; embossed, hot stamped or four-color printed pattern finishing; square or rectangular
More than $5
Fabric; 60x30x25cm; pearls, metal and 3D print trimmings; natural finish

Indonesia sourcing gift packaging product features typical component of a gift bag

Indonesia Sourcing: Gift packaging 2018 Supplier survey

Indonesia Sourcing: Gift packaging 2018

Indonesia Sourcing: Gift packaging 2018

• Gift bags • Gift boxes

To give buyers first-hand information from active gift packaging exporters in Indonesia, we’ve surveyed the manufacturers featured on this site.

Export pricesExport markets & salesProduct trendsChallenges
  • Most surveyed suppliers will be increasing quotes in the next six months.

  • Of those planning to raise prices, the majority will keep adjustments within 10 percent.

  • The rising cost of materials is one of the factors prompting price increases.


  • Indonesia gift packaging suppliers have an optimistic outlook on export sales for the next 12 months.

  • Of the survey respondents, 22 percent see overseas revenue increasing more than 20 percent.
  • Asia is expected to remain the top destination of gift packaging from Indonesia.

  • Eco-friendly models will grow in number.

  • Upcoming releases will also include mixed media featuring geometric patterns and modular jewelry items.
  • Colorful and intricate designs will also be popular.

  • Labor cost is challenging to most suppliers.

  • Fierce competition in the domestic and global market is another concern.

  • Surveyed companies are also concerned about raw material costs.

Export prices

Quotes of Indonesia gift packaging are expected to increase over the next six months due to the rising cost of raw materials, particularly paper. Last year, costs already surged five times.

Another factor for higher component expenses is growing demand from ancillary industries such as food and fashion. Demand has also been affected by manufacturers establishing their online presence, making them more accessible to potential clients. As a result, more than 40 percent of respondents plan to adjust price levels up to 10 percent.

Meanwhile, nearly two-fifths of surveyed producers are likely to retain quotes since they had already taken surging manufacturing expenditure into consideration.

Indonesia Gift packaging Survey Export Prices

Export markets & sales

Majority of respondents have a positive outlook on export sales for the next 12 months, with 22 percent anticipating overseas shipments to surge more than 20 percent, particularly during holidays and peak seasons, because of the companies’ marketing efforts. They also predict that growth in the industrial sector will also boost the handicraft segment.

Most surveyed manufacturers plan to target clients in Southeast and East Asia, with only 5 percent focusing on the EU.

Among surveyed companies, 33 percent will be focusing on innovate products over the next six months. In particular, the growing movement for eco-friendly models are encouraging companies to experiment with green technology such as edible packaging, and recycled or reusable materials.

Other suppliers will concentrate on mixed-media designs, and new colors and finishes. Yogyakartas, one of the suppliers, said that new design and finishing such as animal-shaped packaging, is one of their selling points.

Indonesia gift packaging Supplier Survey Export Forecast

However, other enterprises said that the market is slowly being saturated with similar styles as it is difficult to implement copyright laws on the Indonesia handicraft sector.

Challenges

Forty-one percent of respondents cited labor-related concerns as their primary difficulty over the coming months. Most suppliers rely on skilled workers with certain craftsmanship abilities, but salaries are not competitive enough to convince employees to stay long. To cope, some creators outsource certain steps to surrounding villages on a commission basis.

Attracting and retaining skilled workers is another challenge facing the industry. Of the 19 suppliers surveyed, 23 percent indicated finding employees with the required technical skills as an issue. To resolve this, makers provide training in skills such as paper crafting and carving to new employees. They also offer commissions to encourage efficient production and performance.

Indonesia gift packaging Supplier Survey Key Findings

Another challenge over the short term is quote competition, with many manufacturers offering the same designs and price points. Overhead expenditure such as rising shipping fees adds to the difficulty.

The continuous increase of raw material costs will also likely exert pressure on surveyed companies over the next six months.

Indonesia Sourcing: Gift packaging 2018 PDF download

Indonesia Sourcing: Gift packaging 2018

Indonesia Sourcing: Gift packaging 2018

• Gift bags • Gift boxes

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Supplier & products

Sections


  • Products
  • Indonesia gift packaging suppliers

Industry overview

Sections


  • Highlights
  • Competitive advantages
  • Challenges
  • Industry composition
  • Indonesia gift packaging suppliers

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  • Exports
  • Supplier locations map

Product features

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  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Indonesia gift packaging suppliers

Supplier survey

Sections


  • Highlights
  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Indonesia gift packaging suppliers

Charts


  • Export prices
  • Export forecasts
  • Key findings

Indonesia Sourcing: Gift packaging 2018 Supplier list

Indonesia gift packaging suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusGift bagsGift boxesGift wrappers
Batik 76 Active
 
CV Paragon International Active
  
CV Yogyakartas Active
 
Jogja Gift Box Active
 
Jogja Handycraft Active
  
Jorajona Craft Active
  
Kado KadoListing 
Kaifa Craft Active
  
Kertas Bungkus Active
  
Lealta Design



Active
 
Omah Craft
Active
  
PT Kapasari Active
Raq Craft
Active
  
Rizky Vinyl Craft Active
  
Sanggar Peni Active
  
Selaras Mandiri Active
 
UD Kemajuan Active
 
Uwitan
Active