Indonesia Metal Recycling Market (2025-2031) | Outlook, Revenue, Size, Growth, Value, Industry, Companies, Share, Analysis, Trends & Forecast

Topics Covered in the Indonesia Metal Recycling Market Report

The Indonesia Metal Recycling Market report comprehensively covers the market by scrap type, equipment, type, and end-use sector. It provides an unbiased and insightful analysis of current market trends, growth opportunities, challenges, and key drivers. It serves as a valuable resource for stakeholders to align their strategies with evolving market dynamics.

Indonesia Metal Recycling Market Synopsis 

The Indonesia Metal Recycling Market is increasingly significant due to rising urbanization, industrial growth, and demand for recycled ferrous and non ferrous metals. Attributed by construction, automotive, and consumer appliance sectors, the market is advancing through adoption of shredders, shears, granulators, and briquetting equipment. Growth drivers include government incentives, rising scrap generation, and environmental awareness. However, challenges stem from quality variability, collection inefficiencies, and high logistics costs. Increasing investments in recycling infrastructure and technology highlight the market expanding strategic importance for Indonesia circular economy.

Indonesia Metal Recycling Market size is expected to grow at a significant CAGR of 6.2% during the forecast period 2025–2031. Growth is fueled by rapid industrialization and rising automotive and construction demand requiring recycled steel and aluminium. Government incentives and sustainability regulations promote recycling. Technological advancements in shredding, granulating, and briquetting machinery improve recovery efficiency. The Indonesia Metal Recycling Market Growth is strengthened by urban expansion and increasing scrap availability, encouraging adoption of modern recycling infrastructure and capacity expansion.

Challenges Faced by the Market 

The Indonesia Metal Recycling Industry faces several challenges. These challenges include  high logistical costs due to fragmented collection and limited transportation infrastructure. Quality inconsistencies and contamination in scrap feedstock hinder recycling efficiency, raising processing costs. Lack of uniform standards and testing facilities causes shipment rejections. Informal sectors dominate collection, limiting traceability and investment appeal cause, hinderance to market expansion. Uncertainty about regulations and economic instability that affects commodity prices make it even harder to allocate capital.  Addressing these fundamental problems is still important to unlock the market's full potential.

Indonesia Metal Recycling Market Trends 

A major trend in the Indonesia Metal Recycling Market is integration of automation and data driven sorting systems using AI. Further, remote sensors, and IoT to improve metal identification, purity, and efficiency in shredders and granulators are propelling the market growth. Concurrently, firms are adopting digital platforms for procurement and traceability, connecting scrap generators and recycling units. Another trend is omnichannel sales of recycled metal products, combining online marketplaces for industrial buyers with physical distribution hubs to streamline logistics and provide click and collect options to improve convenience and service reliability.

Investment Opportunities in the Indonesia Metal Recycling Market 

There are many investment opportunities in the market. One important area is building e-commerce platforms. These platforms can help link scrap suppliers directly with recyclers. Another key area is fintech. It can make payments and logistics easier, especially in less developed parts of the market. Digital tools are not widely used yet. Despite this, the demand for recycled ferrous and non-ferrous materials is growing. This creates a good chance to invest in tech-based procurement and tracking systems. Also, improving infrastructure is important. This includes better recycling plants, shredding machines, and systems for granulating and briquetting. Distribution hubs matter too. These upgrades help make operations more efficient and increase capacity to meet rising sector needs.

Leading Players of the Indonesia Metal Recycling Market:

Prominent companies in the Indonesia Metal Recycling Market Share include major domestic and regional recyclers such as PT Trisula International Tbk, Multimetal Recycling, and Prima Jaya Abadi, alongside global firms like Aurubis and Novelis. These players lead through investments in advanced recycling equipment, sustainable sourcing, and partnerships with construction and automotive industries to scale operations and enhance output quality.

Government Regulations Introduced in the Indonesia Metal Recycling Market Initiatives:

The Indonesian government has implemented policies under the Mining Law and value added processing mandates requiring local metal processing. Initiatives include tax incentives and export control regulations that support scrap metal recycling. Regulations such as mandatory purity standards and import/export licensing promote quality and resource optimisation. The Ministry of Environment’s waste management framework encourages circular economy practices, while incentives for domestic processing facilities aim to strengthen recycling infrastructure and foreign investment.

Future Insights of the Indonesia Metal Recycling Market:

The Indonesia Metal Recycling Market industry is poised for robust expansion. With growing demand from construction, automotive, and appliance manufacturing sectors the market is having significant growth. Rising trends include adaptability of green recycling technologies, AI enabled sorting, and blockchain based traceability. Export potential of non ferrous scrap to regional markets also presents opportunities. Challenges like feedstock quality and infrastructure gaps will require strategic investment. Companies investing in scalable, automated operations and adhering to regulatory standards will gain a competitive edge in Indonesia changing recycling landscape.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Old Scrap to Witness Fastest Growth – By Scrap Type

According to Guneet Kaur, Senior Research Analyst, 6Wresearch, the old scrap segment is witnessing rapid growth due to rising focus on sustainable practices and growing awareness about metal waste recovery. It offers a cost-effective resource for metal producers, encouraging its widespread collection and reuse.

Non-Ferrous to Witness Fastest Growth – By Type

Non-ferrous scrap is gaining traction due to its lightweight nature and high recyclability. Industries prefer these metals for manufacturing energy-efficient products, driving their demand across various applications such as automotive, electronics, and consumer goods. The value retention also makes them highly sought after.

Granulating Machines to Witness Fastest Growth – By Equipment

Granulating machines are experiencing swift adoption as they enhance metal processing efficiency, particularly in sorting and refining. Their ability to manage large volumes and improve metal purity makes them ideal for recyclers seeking higher output and reduced environmental impact.

Consumer Appliances to Witness Fastest Growth – By End-use Sector

The consumer appliances sector is growing rapidly due to increasing demand for electronics and household gadgets. Metal components from outdated appliances are being recovered and reused efficiently, fueling recycling practices while supporting sustainable manufacturing and responsible disposal.

Key Attractiveness of the Report

• 10 Years of Market Numbers
• Historical Data Starting from 2021 to 2024
• Base Year 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market
• Major Upcoming Developments and Projects