Indonesia Flooring Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Indonesia Flooring Market Overview

• The Indonesia Flooring Market is valued at USD 3.3 billion, based on a five-year historical analysis of commercial and related flooring segments in the country. This growth is primarily driven by rapid urbanization, increasing disposable incomes, and a booming construction sector, particularly in commercial, residential, and industrial projects. The demand for various flooring solutions, including tiles, vinyl and other resilient products, carpets, wood-based products, and industrial flooring systems, has surged as residential, commercial, and logistics-related projects expand across the country.
• Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their high population density, strong construction pipelines, and ongoing infrastructure development. Jakarta, as the capital and core of the Greater Jakarta (Jabodetabek) region, leads in commercial, residential, and warehousing projects, while Surabaya and Bandung are experiencing significant growth in real estate, retail, and industrial estates, further driving the demand for flooring solutions.
• Green building and sustainability requirements are increasingly influencing material selection for construction projects, including flooring, with a growing emphasis on low-VOC, recyclable, and eco-friendly products that align with national building and environmental standards. The Regulation of the Minister of Public Works and Public Housing of the Republic of Indonesia Number 21/PRT/M/2021 on Green Buildings, issued by the Ministry of Public Works and Public Housing, sets operational criteria for energy efficiency, indoor air quality, and environmentally friendly building materials in eligible new and existing buildings, encouraging manufacturers and project owners to adopt greener flooring options to comply with these provisions.

Indonesia Flooring Market Segmentation

By Flooring Type:The flooring market can be segmented into various types, including non-resilient flooring, resilient flooring, carpets and rugs, wood and laminate flooring, seamless/industrial flooring, and others. Each type caters to different consumer preferences and applications, with specific materials and installation methods influencing market dynamics, and with ceramics, vitrified (porcelain), vinyl/LVT, wood and laminate, carpets, and specialized industrial systems emerging as key product families in Indonesia.

By End-Use:The flooring market is segmented by end-use into residential, commercial, industrial & logistics, infrastructure & public buildings, and others. Each segment reflects distinct performance, durability, and design requirements, with residential and commercial sectors being the primary drivers of demand, while industrial, warehousing, and institutional facilities increasingly specify high-performance resin and specialized systems to support heavy loads and hygiene or safety standards.

Indonesia Flooring Market Competitive Landscape

The Indonesia Flooring Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Keramika Indonesia Assosiasi Tbk (KIA), PT Arwana Citramulia Tbk, PT Mulia Industrindo Tbk (Mulia Ceramics), PT Granitoguna Building Ceramics (Granito), PT Roman Ceramics International, PT Indah Kiat Pulp & Paper Tbk (flooring-related laminates), PT Dharma Satya Nusantara Tbk (wood-based flooring), PT Kayu Lapis Indonesia, PT Sumber Setia Abadi (vinyl & resilient flooring distribution), PT Supreme Decors International (laminate & engineered wood), PT Trisensa Mineral Utama (stone & marble flooring), PT Indocement Tunggal Prakarsa Tbk (cement-based flooring solutions), PT Fagetti (natural stone flooring), International Players Active in Indonesia (Tarkett, Gerflor, Interface, Armstrong, Others), Selected Regional / Local Niche Players (Epoxy & Industrial Flooring Applicators) contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Flooring Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Indonesia's urban population is projected to reach 68% in the future, up from 56% in 2020, according to the World Bank. This rapid urbanization drives demand for residential and commercial flooring solutions, as new housing and infrastructure projects emerge. The government’s commitment to urban development, with an investment of approximately $400 billion in infrastructure in the future, further supports this trend, creating a robust market for flooring products in urban areas.
• Rising Disposable Income:The average disposable income in Indonesia is expected to increase from $3,800 to $4,200 in the future, as reported by the IMF. This rise in income enhances consumer purchasing power, leading to greater investments in home improvement and renovation projects. As consumers seek higher-quality flooring options, the demand for premium materials, such as hardwood and luxury vinyl tiles, is anticipated to grow significantly, benefiting the flooring market.
• Growing Real Estate Sector:The Indonesian real estate sector is projected to grow by 6% annually in the future, driven by a surge in housing demand and commercial developments. The government’s housing program aims to build 1 million homes annually, creating substantial opportunities for flooring suppliers. Additionally, the influx of foreign investment, estimated at $5 billion in the future, is expected to further stimulate the real estate market, thereby increasing the demand for diverse flooring solutions.

Market Challenges

• High Competition:The Indonesian flooring market is characterized by intense competition, with over 200 local and international players vying for market share. This saturation leads to price wars, which can erode profit margins. Companies must differentiate their products through innovation and quality to maintain a competitive edge. The presence of established brands further complicates market entry for new entrants, making it challenging to capture consumer attention and loyalty.
• Fluctuating Raw Material Prices:The flooring industry in Indonesia faces challenges due to volatile raw material prices, particularly for timber and synthetic materials. For instance, timber prices have increased by 15% in the past year due to supply chain disruptions and environmental regulations. These fluctuations can significantly impact production costs and pricing strategies, forcing manufacturers to adapt quickly to maintain profitability while ensuring product availability.

Indonesia Flooring Market Future Outlook

The Indonesia flooring market is poised for significant growth, driven by urbanization, rising incomes, and a booming real estate sector. As consumers increasingly prioritize aesthetics and sustainability, the demand for eco-friendly and innovative flooring solutions is expected to rise. Additionally, advancements in technology will likely lead to the development of smart flooring options, enhancing user experience. Companies that adapt to these trends and invest in sustainable practices will be well-positioned to capitalize on emerging opportunities in the market.

Market Opportunities

• Expansion of E-commerce Platforms:The growth of e-commerce in Indonesia, projected to reach $130 billion in the future, presents a significant opportunity for flooring companies. Online sales channels allow manufacturers to reach a broader audience, facilitating direct-to-consumer sales. This shift can enhance brand visibility and customer engagement, driving sales growth in a competitive market.
• Increasing Demand for Eco-friendly Products:With a growing awareness of environmental issues, the demand for sustainable flooring solutions is on the rise. The market for eco-friendly flooring materials, such as bamboo and recycled products, is expected to grow by 20% annually in the future. Companies that prioritize sustainability in their product offerings can attract environmentally conscious consumers, enhancing their market position and brand loyalty.