Indonesia

indonesia

INDONESIA

ATPA provided technical recommendations on toy conformity assessment procedures. The advice helped the local toy industry make its voice heard with the government on testing procedures that would have limited their potential growth.

ATPA also ran workshops with the Ministry of Industry to share technical knowledge to various government ministries and local industry associations on international safety norms Intellectual Property Rights and brand protection.

About the Indonesian Toy Sector:

• Indonesia plays a significant role in the global supply chain for toys. Roughly half of the world’s toy dolls are produced in Indonesia, and Indonesia is home to one of the largest toy factories in the world.

• There are over 300 toy companies operating in Indonesia—more than 180 local manufacturers, around 50 distributors, and over 100 importers. Toy products mainly produced in Indonesia include plastic toys, plush toys and dolls, and wooden toys.

• The export value of children’s toys reached around USD 400 million in 2018, and is projected to reach USD 500 million by the end of 2020.

• The Indonesian government maintains an “open for business” ethos and has recently pushed for foreign investment in the toy sector to meet growing domestic demand. The government is supported in this by the local Indonesian Toy and Toy Entrepreneurs Associations.

• The government recognizes the toy industry’s potential to boost the national economy, as well as the opportunity presented by the shifting of global supply chains related to the US-China trade war, and is aiming to capitalize on that and attract investment.

• While challenges related to import requirements and ownership arrangements often arise for foreign investors wishing to enter the Indonesian market, there are many opportunities to capitalize on the Indonesian toy industry’s potential.