In today's globalization era, a country's economy must grow. Industries --particularly the manufacturing sector-- must expand to compete in the global market.

Indonesia holds significant potential to develop the manufacturing industry and make it a primary sector of the national economy. This potential ranges from demographic dividend, big domestic market, raw materials, and strategic location to government support.

Indonesia's demographic dividend of the abundant working-age population provides a substantial workforce for the manufacturing industry.  The country's population size of over 270 million people makes it an attractive domestic market for the manufacturing industry. Indonesia also boasts the natural resources needed as raw materials for the manufacturing industry, be it for the textile, food, and chemicals sectors. The country's strategic location between Southeast Asia and Australia makes it easier for businesses to access the global market. Government support through tax incentives, subsidies, and ease of licensing also shows its strong commitment to advancing the manufacturing industry.

There are a number of manufacturing sectors that hold significant growth potential. The paint industry is one of them, alongside textiles and apparel, electronics, automotive, and chemicals, to name a few.

Improving infrastructure quality, human resources, research, and development, as well as product promotion and marketing, are key to achieving this potential.

The progress of Indonesia's manufacturing industry can be seen in the Industrial Production Index (IIP) released by the United Nations Industrial Development Organization (UNIDO). From 2014 to 2024, Indonesia's IIP has shown a significant increase. The IIP is an index of overall industrial sector performance and is one of the important indicators for assessing a country's economic health.

Mataram Paint is one of the manufacturing companies that are showing significant performance improvement in the paint industry. The company attributes its growth to its continuous innovations and consistent delivery of high-quality products.

EMCO -- the wood and metal paint produced by Mataram Paint -- has been the best in its class since 1950. Between 2013 and 2017, EMCO expanded this product range to include primers and thinners. This makes the EMCO wood and metal finishing series even more comprehensive and high-quality.

As the product range grows, this calls for factory modernization.

In 2023, Mataram Paint began production at a new factory in Sidoarjo with a total capacity of 20,000,000 kg, covering all existing product ranges and various future product innovations. This factory is designed to be ready to produce more environmentally friendly paint types as global sustainability awareness rises.

The paint industry in Indonesia is painting the future with bright colors. Driven by several factors, this sector shows positive growth and has the potential to become a significant player in the national industrial competitive market. Let's take a closer look at this potential:

• Booming Infrastructure and Property: The rapid development of infrastructure and property in Indonesia drives high demand for paint. Houses, buildings, and public facilities need high-quality paint to beautify and protect structures.

• Developments in the Automotive, Furniture, and Shipbuilding Industries: Wood and metal paint is a key coating material in the manufacturing of cars, motorcycles, and ships, which heavily utilize iron materials. The same goes for the furniture industry which mainly uses wood materials.

• Increasing Consumer Purchasing Power: As the economy grows, so does the country's consumer purchasing power. The expansion of small and medium enterprises (SMEs) --which account for 80 percent of the Indonesian economy-- helps boost the country's growth. This means consumers are now more selective and willing to spend more on quality paint, not just focusing on getting them at a low price.

Indonesia, with a population of over 270 million, has a surprisingly low per capita paint consumption of only 4.5 kg, as reported by the Indonesian Paint Producers Association (APCI). This is a stark contrast to neighboring Malaysia, where the average person consumes 10-14 kg of paint. Such a significant gap indicates that the Indonesian paint industry has immense potential for growth.

"In this dynamic and competitive business era, the definition of a company is no longer limited to physical assets such as offices, factory buildings, or large warehouses. Rather, they are increasingly known through their intangible assets, namely brand value," branding expert Lia Sidik was quoted as saying.

Just like how financial statements meticulously track a company's fiscal health, businesses should also maintain their brand value if they seek to record sustainable growth. Continuous innovations and improvements -- swift responses to consumer needs -- are set to boost the Indonesian paint industry's contribution to the economy.