Indonesia's Bottled Water Industry Prepares for 2026 Expansion

Strong Domestic Demand Drives Growth Prospects

The Indonesian bottled water industry is set for significant expansion in 2026, buoyed by robust domestic consumption amidst ongoing global economic uncertainties. The projected economic growth of 5.0-5.4% for 2026 is expected to provide a favorable backdrop for this growth, with domestic demand remaining the primary driver.

Economic Context and Government Support

The Indonesian government, through its macroeconomic framework and fiscal policies, is targeting sustained economic growth supported by household consumption, real sector investment, and continued structural reforms. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that strengthening domestic demand and improving the investment climate will be crucial in maintaining the national economic momentum in 2026.

Industry Outlook and Stakeholder Perspectives

Shinta Kamdani, Chair of the Indonesian Employers' Association (Apindo), shares a similar optimistic view, projecting that Indonesia's economic growth will remain within the 5.0-5.4% range in 2026. According to Kamdani, domestic consumption will continue to be the main engine of growth, particularly in the early part of the year, supported by community economic activities and major religious holidays.

Implications for the Bottled Water Industry

The positive economic outlook and the emphasis on domestic consumption bode well for the bottled water industry. As a sector within the manufacturing industry, the bottled water segment is well-positioned to benefit from the anticipated economic expansion and increased consumer spending. The industry's growth is expected to be driven by rising demand for convenient and safe drinking water, a trend that has been further accelerated by the health consciousness heightened during the pandemic.