Description
The Bottled Drinking Water (AMDK) industry in Indonesia has continued to show remarkable growth since its introduction in the 1970s. Moving away from the traditional habit of boiling water, consumers have shifted toward more practical, hygienic, and easily accessible solutions. Advancements in processing and packaging technology, along with the rise of contract manufacturing (maklon) schemes, have led to an increasing number of producers, offering a diverse range of products—from mineral water to enhanced formulations catering to evolving consumer needs.
However, despite its rapid expansion, the industry faces complex challenges. Brand competition is intensifying, price pressures due to product homogeneity are unavoidable, and regulatory and sustainability issues have become critical concerns for businesses.
This 92-page publication presents an in-depth analysis of the key aspects shaping the AMDK industry, including market structure, demand and supply trends, competitive behavior, and the overall competitive landscape. Using analytical frameworks such as Regulatory Review, SWOT, Supply-Demand, Game Theory, and Porter’s Five Forces, this publication delivers structured and insightful information. It serves as a valuable reference for industry players, academics, distributors, retailers, investors, and financial institutions, providing strategic insights for informed business decisions and enhancing competitiveness in the dynamic AMDK industry.
CONTENTS
EXECUTIVE SUMMARY ……………….………………………………… i-iii
CHAPTER I: INDUSTRY AND MARKET OF AMDK IN INDONESIA 1
A. Industry Development ……………………..…………………….. 1
B. Categories and Packaging of AMDK …………..……………… 4
C. Product Life Cycle of AMDK …..…………..……………………. 7
D. Value Chains of AMDK Industry …………..……………………. 8
E. Manufacturing Contract (Maklon) ……………………………… 11
F. Regulatory Framework of AMDK Industry ………………..….. 12
• Law 17/2019 on Water Resources ………..………….…… 12
• Government Regulation No 30 of 2024 …….…………….. 14
• Water Resources Business Utilization Licensing ………. 15
• Groundwater Usage Requirements ……………..…..……. 16
• Taxes on Groundwater and Surface Water Usage ……….. 17
• The Indonesian National Standard ………………………… 18
• Safety and Health Standard Compliance …..……………. 19
• Halal Certification …………………………………………….. 20
• Plastic Packaging for Minimum 1 Litre AMDK …….…….. 21
G. SWOT Analysis of the AMDK Industry in Indonesia ………… 22
• Strengths …………………………….….………………….. 22
• Weaknesses ..………………………………………………. 23
• Opportunities ……………………………..……………….. 24
• Threats ……………………………………….……………… 25
• SWOT Matrix for AMDK Industry ……………….………. 26
• Strategic Implications of SWOT Analysis ……………… 27
CHAPTER II: ECONOMIC ASPECTS OF AMDK IN INDONESIA …. 28
A. Demand and Supply …………………………………………..….. 28
B. Characteristics of Demand ……………………………………… 34
C. Characteristics of Supply …………………………….…………. 35
D. The Market Structure of AMDK ……………..………………….. 36
E. Buyer’s or Seller’s Market? ……………………………….……. 37
F. Switching Cost in AMDK Market ……………………..………… 38
G. Game Theory Analysis of AMDK Industry ……………………. 39
1. Price Competition (Prisoner Dilemma) ………………… 40
2. Bertrand Competition (Price War) ……………..………. 41
3. Repeated Games (Tacit Collusion) ……………….…….. 42
4. Deterrence of New Entrants ……. ………………………… 43
5. Strategic Insights of Game Theory …………………….. 44
H. Exports and Imports of AMDK ………………………………….. 45
CHAPTER III COMPETITIVE LANDSCAPE AMDK INDUSTRY …… 47
A. Porter’s Five Competitive Forces in AMDK Industry ……..… 49
1. Threat of New Entrants ……….………………………….. 49
2. Bargaining Power of Supplier …………………….…….. 55
3. Bargaining Power of Buyer …..…………………………. 60
4. Threat of Substitutes ……………………………………… 65
5. Intensity of Competitive Rivalry ……………….……….. 70
Overall Competitive Forces of AMDK Industry ……………… 75
B. Trade-offs in Competitive Landscape of AMDK Industry ….. 76
C. The Attractiveness of AMDK Industry ….…………………….. 79
D. Enter, Avoid, or Exit AMDK Market? ……………………….. … 81
Reasons to Enter ……………….…………………………………. 81
AQUVIVA: Entering the Market with Differentiation ………… 82
Oxymine: Local Brand from Kebumen Mountain Water …… 83
Reasons to Avoid ……………………………………..………….. 84
Reasons to Exit …………………………………………………… 85
Consequences of Entering AMDK Market ………………..….. 86
E. The Implication of Competitive Landscape for Retailers …. 87
F. The Implication of Competitive Landscape for Financing …. 89
CHAPTER IV CONCLUSION ………………………………………………. 92
Specifications:
Document format: PDF
Paper size: A4
File size: 2.3 MB
Page count: 92
Price: IDR 325,000
