Indonesia DIY & Hardware Store Market Outlook to 2028

Indonesia DIY & Hardware Store Market Overview

• The Indonesia DIY & Hardware Store market was valued at USD 55.5 billion, driven by the growing trend of home improvement projects, expansion of retail chains, and the rise in consumer interest in DIY projects. This market benefits from the increasing disposable income of Indonesia's middle class, leading to a demand for tools, paints, and home improvement materials. The rebound in construction activities has also boosted market growth, alongside political stability and growing urbanization in key regions.

• Java remains the dominant region for DIY retail, driven by its large population, economic activity, and higher levels of consumer spending compared to other parts of Indonesia. Cities like Jakarta, Surabaya, and Bandung are prominent due to their high urbanization rates, infrastructure projects, and the presence of large retail outlets. These cities serve as critical hubs for consumer demand, making them key drivers of the market.
• The Indonesian government has committed to building 1.5 million affordable homes by 2025 as part of its housing development initiative. This has led to a surge in demand for building materials, with hardware stores expected to benefit from the increased purchase of supplies. The government's allocation of IDR 50 trillion in 2024 to support this program ensures that DIY and hardware markets will experience continued growth through construction and renovation activities.

Indonesia DIY & Hardware Store Market Segmentation

By Product Type: The market is segmented by product type into Power Tools, Hand Tools, Building Materials, Paints & Home Dcor, and Electrical & Plumbing Equipment. Power Tools dominate the market due to the rising demand from both DIY enthusiasts and professional contractors. Brands like Bosch and Makita have established a strong presence, offering quality and reliability, making power tools the preferred choice for home improvement projects. The convenience and efficiency of power tools in construction and repair jobs contribute to their leading position.

By Distribution Channel: The market is segmented by distribution channel into Offline Retail, Online Stores, and Specialty Hardware Stores. Offline retail, particularly large chains like Ace Hardware Indonesia, holds the largest share due to the traditional shopping habits of Indonesian consumers, who prefer physically inspecting tools and hardware products before purchasing. However, online sales are rapidly growing, driven by the increasing penetration of e-commerce platforms such as Tokopedia and Bukalapak, offering convenience and a wide range of product selections.

Indonesia DIY & Hardware Store Market Competitive Landscape

The market is highly competitive, with both local and international players operating in the sector. Key players include Ace Hardware Indonesia, Mitra10, and Depo Bangunan, which have been expanding their store networks and product offerings to meet rising consumer demand.

Indonesia DIY & Hardware Store Market Analysis

Market Growth Drivers

• Rise in Home Improvement Activities: The demand for DIY products and hardware in Indonesia has grown substantially due to the increased focus on home improvement and renovations. Over 12 million households in Indonesia have undertaken renovation projects in the last five years. With a growing middle class and around 75% of homes being privately owned, more homeowners are opting for DIY repairs and maintenance.
• Increased Availability of Construction Materials: The Indonesian construction sector has been consistently growing, with around 5 million new construction projects annually. This has led to a greater demand for construction materials and tools. In 2024, the Indonesian government allocated IDR 420 trillion towards infrastructure development, which directly benefits hardware stores that supply these materials.
• Growth in E-Commerce Sales of Hardware Products: The Indonesian e-commerce market has seen a sharp increase in the sale of DIY and hardware tools. Online platforms have reported 6 million transactions in the hardware category in the past year. With over 205 million active internet users in Indonesia and e-commerce platforms expected to grow by 20% in transaction volume by 2025, the accessibility of DIY tools and hardware through digital channels is driving market growth.

Market Challenges

• Limited Local Production Capabilities: Despite Indonesias expanding industrial base, local production of DIY and hardware materials remains limited. Domestic manufacturers account for only 30% of the market's demand for construction and renovation materials, as reported by the Indonesian Ministry of Industry.
• Environmental Regulations: Strict environmental regulations related to the production of chemicals and construction materials have affected the supply of certain hardware products. In 2024, new regulations on the use of hazardous substances in manufacturing processes were implemented, affecting the availability of certain paints, adhesives, and solvents.

Indonesia DIY & Hardware Store Market Future Outlook

Over the next five years, the Indonesia DIY & Hardware Store industry is expected to see steady growth, driven by increasing consumer spending on home improvement projects and the rising trend of urbanization.

Future market Opportunities

• Expansion of Smart Home DIY Tools: In the next five years, the demand for smart home DIY products is expected to grow. By 2029, smart tools and hardware such as automated security systems and home improvement gadgets are projected to account for over 15-million-unit sales annually, driven by increasing consumer interest in home automation and renovation. The adoption of these products will reshape the DIY market in Indonesia.
• Localization of Production: The Indonesian government is set to expand its support for local manufacturing over the next five years, aiming to meet 70% of the domestic demand for hardware products by 2029. New production facilities are expected to produce up to 40 million units of various DIY products annually, reducing reliance on imports and stabilizing prices for consumers.