Indonesia Ductile Iron Pipe Market Trend Analysis (Late 2025 – Early 2026)

With the continued urbanization and infrastructure development in Indonesia, the demand for ductile iron pipes (DIP) in water supply, flood control, and hydraulic projects has been steadily increasing. Based on government budgets, infrastructure projects, and market reports, this article analyzes the main trends and development directions of the Indonesian ductile iron pipe market over the next 2–4 months.

1. Policy-Driven: Steady Short-Term Demand Growth

The Indonesian government has allocated key investments in the 2026 fiscal year for water-related infrastructure, including urban water supply system upgrades, irrigation improvements, and reservoir flood control projects.

Examples include:

• Indonesian government budget shows significant allocation for water infrastructure in 2026

  National expenditure draft review highlights urban water supply and regional water projects as priority areas

These policy directions indicate that ductile iron pipes are positioned to meet the growing demand in medium- to large-scale water supply and hydraulic projects.

2. Major Infrastructure Projects Driving Localized Demand

Projects such as the new capital Nusantara and coastal flood control initiatives are creating clear demand for medium- to large-diameter pipes.

• New capital construction is expected to procure several thousand tons of ductile iron pipes for urban water supply and drainage systems 

• Regional reservoirs and flood control projects, such as those in East Kalimantan, require pressure-resistant and corrosion-resistant pipe materials

These projects represent concentrated procurement opportunities, further promoting the use of ductile iron pipes in Indonesia.

3. Market Overview and Competitive Landscape

According to the Global Ductile Iron Pipe Market Report (Q3 2025):

• Stable market growth: Southeast Asian ductile iron pipe market is growing at approximately 4–5% annually

• Local procurement trend: Indonesian domestic production accounts for 30–35% of the market, with government policies encouraging local sourcing

• Competition from alternative materials: HDPE and PVC pipes have cost advantages in some smaller projects, but ductile iron pipes maintain advantages in lifespan, pressure resistance, and maintenance costs

Additionally, imported ductile iron pipe prices are influenced by shipping costs and raw material (iron ore, nodulizing agents) fluctuations, which may cause short-term supply and price variations.

4. Short-Term Market Trends

Considering policies, projects, and market observations, the Indonesian ductile iron pipe market over the next 2–4 months shows the following trends:

1. Concentrated demand for medium- to large-diameter pipes: Driven by new capital projects, coastal flood control, and regional reservoir construction

2. Acceleration of urban water network upgrades: Pilot projects by local PDAMs focus on network renewal and leakage reduction

3. Stable policy-driven investment: Government special budgets and infrastructure investment provide market support

These trends indicate that the Indonesian ductile iron pipe market remains steadily growing, with broad application potential.

Conclusion

Based on policy initiatives, actual engineering projects, and market reports, the demand for ductile iron pipes in Indonesia’s water supply, flood control, and hydraulic infrastructure is rising. As infrastructure development continues, procurement of medium- and large-diameter pipes is expected to maintain growth, highlighting significant market potential.