Coatings World Interview: PT Avia Avian Tbk CEO Wijono Tanoko 

Established in 1978 as an integrated paint manufacturer, PT Avia Avian Tbk is one of the largest decorative paint manufacturers and among the market leaders in Indonesia’s decorative paint and coating industry.

For more than four decades, Avian has provided a range of products, such as Sunguard All in One wall paint, Supersilk Anti Noda, Avitex, No Drop waterproofing paint, and Avian wood & metal paint, bringing color to millions of Indonesian households.

Coatings World interviews PT Avia Avian Tbk CEO Wijono Tanoko to learn about the company’s contribution in Indonesian coating industry.

Coatings World: Could you take us through the journey of PT Avian and important milestones in this journey.

Wijono Tanoko: Avian Brands was established in 1978 in Sidoarjo, East Java, as a decorative paints and coatings company. What sets Avian Brands apart from its competitors is its vertical integration capability, which started back in 1986. Today, the company produces a significant portion of its key raw materials internally, including ~97% of resin and ~25% of packaging. 

To strengthen market penetration, we established PT Tirtakencana Tatawarna in 2000 as our distribution company. At present, Avian Brands is supported by 127 wholly-owned distribution centers (DCs) and 15 mini DCs, providing high-quality services to over 59,000 building material stores nationwide. 

In 2020, we further enhanced our innovation capabilities with the establishment of the Avian Innovation Center. Empowered by more than 90 qualified chemists and a robust RDI facility, Avian Brands launches more than 10 new products every year.

In 2021, the company successfully completed its IPO, becoming the only paint company listed on the Indonesia Stock Exchange, with a current market capitalization of ~USD 2 billion. 

Most recently, on March 13, 2025, Avian Brands announced the acquisition of a 16.67% stake in PT Dextone Lemindo, a leading player in the adhesive & sealant industry. Starting in May 2025, we began distributing Dextone products through our distribution network. Currently, we are focused on accelerating sales growth and strengthening our combined position as the second-largest player in Indonesia’s adhesive market.

Coatings World: Architectural coating is the main segment of PT Avian. What is the approximate market share of your company in this segment?

Wijono Tanoko: According to a 2020 study by Frost & Sullivan, Avian Brands is the market leader in decorative paints and coatings in Indonesia, holding a market share of ~20%. As of 2024, based on our internal estimation, Avian Brands’ market share has increased to ~24%. 

Avian Brands continues to strengthen its position as the market leader through consistent execution of sustainable growth strategies, with a strong focus on gaining share from smaller competitors. At present, we are accelerating the deployment of tinting machines in the market, which will further support market consolidation.

Coatings World: What is the installed capacity of your company? Is there any expansion in the pipeline?

Wijono Tanoko: Avian Brands operates two factories with a combined production capacity of 286,416 MT, and we are also in the process of building a third facility, which is scheduled to be commissioned in 2026. Currently, the installed capacity for the new facility is ~200,000 MT per year, based on two shifts. 

However, for the first year of operation, we will utilize ~100,000 MT for the water-based products and increase over time. Designed with a higher level of automation, the new facility is expected to operate with greater efficiency, including benefits from lower labor costs. This investment will allow us to capture future growth opportunities as we continue to strengthen our position as the market leader.

Coatings World: What is the state of the Indonesian coating industry? What is the approximate volume and value of the total paint industry?

Wijono Tanoko: Based on the Frost & Sullivan study in 2020, the Indonesian decorative paints and coatings market was valued at ~IDR 27 trillion. The same study projected the industry to grow at a CAGR of ~10% over the period 2021–2025.

However, over the past five years, the industry has been weighed down by weak consumer purchasing power and broader macroeconomic challenges, leading to stagnation and, in certain years, contraction relative to earlier projections. As a result, management estimates that the effective market size has been closer to IDR 20–25 trillion.

Looking ahead, as the Indonesian economy recovers and stabilizes, supported by GDP growth of ~5%, we expect the paint industry to resume its expansion trajectory. The long-term fundamentals remain intact, underpinned by recurring demand from repainting, rising household incomes, urbanization, and government housing initiatives.

Coatings World: Multinational paint companies have a huge share of the coating market in most of the South East Asian countries. What is the share of domestic companies and  multinational paint companies in Indonesia? 

Wijono Tanoko: By the end of 2024, we estimate our market share to reach ~24%. In comparison, Nippon Paint, as reported, claims to hold ~19% of the market. 

Other multinational players, such as Akzo Nobel and Jotun, collectively bring the total market share of multinationals to ~35%. Meanwhile, the “Others” category, which represents roughly 26% of the market, is largely made up of smaller local players. These companies generally have limited presence, operating only in certain regional markets across Indonesia.

Coatings World: Which company/companies do you consider as the major challenger for your company?

Wijono Tanoko: Based on the market share breakdown, the primary challenger to Avian Brands is Nippon Paint, which currently holds the second position in the Indonesian market. Aside from Avian and Nippon, which continue to compete aggressively through product innovation, distribution network expansion, and promotional and  marketing initiatives, most other players have not demonstrated the same level of ambition. Over the past five years, both Avian and Nippon have steadily gained market share from smaller competitors.

Coatings World: What has been the approximate growth (in % terms) of the overall coating industry in Indonesia? How do you see the growth in next four years?

Wijono Tanoko: Over the past five years, the Indonesian paint industry has faced headwinds due to weak consumer purchasing power, driven by the slowdown in the domestic economy and the effects of global economic uncertainty. One contributing factor has been that minimum wage growth has lagged behind inflation in the building materials sector, which has constrained household spending. As a result, the industry has experienced stagnant growth and, in some years, even contraction.

However, the Indonesian paint company is shaped by strong fundamentals. With a population of over 280 million people, the country continues to generate recurring demand through repainting activities. Additionally, many homes across Indonesia, especially in rural and lower-income areas, remain unpainted. As household incomes increase, we see this as a significant growth opportunity.

This potential is further reinforced by increasing urbanization and government-led housing programs, both of which are expected to support long-term industry growth. Overall, while near-term growth may continue to be influenced by macroeconomic conditions, we firmly believe that the long-term potential of the paint industry remains strong.

Coatings World: The global coating industry has witnessed a marked shift towards producing greener and healthier products, such as lead-free, chromium-free, water-based, low-odor, and low-VOC coating products. How is the situation in Indonesia and your company’s contribution to it?

Wijono Tanoko: Currently, regulatory pressure in Indonesia regarding VOCs and heavy metals in paint products is relatively limited. Indonesia has a national standard (Standar Nasional Indonesia/SNI) that defines the requirements for paint quality, including low VOC levels and restrictions on heavy metal content. 

However, at this stage, these standards are not yet mandatory across the industry. Nevertheless, our teams are working proactively to anticipate potential regulatory changes and evolving market expectations. We have already secured SNI 3564:2014 certification for seven of our wall paint products.

Additionally, we have been steadily increasing the number of products certified by Green Label Singapore (GLS). We remain strongly committed to further reinforcing this positive trajectory as part of our long-term sustainability goals. CW