Avian Considers Importing Raw Materials from China, Anticipating Force Majeure

Jakarta, Kompas.com – The domestic paint industry is gearing up to face fluctuations in global raw-material prices. Escalating Middle East tensions involving the United States and Israel versus Iran strengthen the need for anticipatory and mitigatory steps for the industry. One of the major paint players, PT Avia Avian Tbk (AVIA), has indicated it will reinforce options to import raw materials from China as a strategic move to safeguard profit margins amid economic uncertainty. China is now viewed not merely as an industrial hub, but as an option for price benchmarking. We are considering importing raw materials from there as one of our mitigation steps. There is at least a 14 to 15 percent share that we can optimise to maintain efficiency,” Andreas told Kompas.com on Thursday (5 March 2026). According to Andreas, dependence on a single supply source is highly risky, especially if there are disruptions to the global supply chain. Until now, the paint industry has been highly sensitive to prices of petrochemical-based chemicals. For Avian, integrating raw materials from China is expected to offset the logistics and operating costs that tend to rise each year. However, the biggest challenge is ensuring colour quality consistency and durability of the paint, two aspects that affect the reputation in the mid-to-upper retail market. In addition to raw-material sourcing issues, the paint industry also faces the challenge of the rupiah’s exchange rate against the US dollar, which is not yet fully stable. However, Avian claims there is still ample room to manoeuvre because its foreign-currency debt ratio is small. Nevertheless, upstream efficiency (raw materials) remains non-negotiable to prevent consumer-level prices from rising drastically and eroding purchasing power. By the first quarter of 2026, the AVIA-listed company has still shown relatively resilient performance. With plans to add stores and expand distribution, securing cheap yet quality raw materials is a crucial foundation before they accelerate expansion into several regions.