Tertiary Water & Wastewater Treatment Equipment in Indonesia Trends and Forecast
The future of the tertiary water & wastewater treatment equipment market in Indonesia looks promising with opportunities in the municipal and industrial markets. The global tertiary water & wastewater treatment equipment market is expected to grow with a CAGR of 5.1% from 2025 to 2031. The tertiary water & wastewater treatment equipment market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the water scarcity/lack of freshwater resources, the growth in industrial water consumption & discharge, and the increasing government initiatives to provide safe drinking water.
• Lucintel forecasts that, within the equipment category, the filter segment is expected to witness the highest growth over the forecast period due to its ability to eliminate any remaining suspended contaminants from the wastewater.
Emerging Trends in the Tertiary Water & Wastewater Treatment Equipment Market in Indonesia
Indonesia is strengthening its water infrastructure amid urbanization, industrialization, and heightened environmental standards. As water shortages, pollution, and climate-related issues worsen, the need for tertiary water & wastewater treatment equipment speeds up. Reuse, environmental conservation, and sanitation upgrades are being encouraged through regulatory systems and public-private collaboration by the government. Tertiary treatment technologies are becoming increasingly popular in industries like textiles, food processing, and tourism. These trends are encouraging the market to shift towards compliance-driven, energy-efficient, and modular solutions to address varied water quality and sustainability demands.
• Modular resort and tourism cluster systems: Indonesia‘s growing hospitality industry is creating demand for decentralized tertiary treatment systems in island and resort regions. Modular systems providing disinfection, nutrient reduction, and polishing are being installed to treat wastewater while upholding ecological requirements. These systems allow local reuse for landscaping or toilet flushing. Their small footprint and low-maintenance operation make them perfect for tourism areas, particularly in Bali and Lombok. This trend is fostering the development of portable, plug-and-play hardware optimized for off-grid resort use.
• Improvement of textile wastewater discharge standards: The textile sector, which is dominated by West Java and Central Java, is subject to stringent norms for wastewater discharge. Tertiary technologies like ultrafiltration, activated carbon filtration, and chemical polishing are being implemented to achieve color, BOD, and COD parameters. Industrial parks are installing common tertiary units to lower individual expenses and enhance compliance. Equipment manufacturers are emphasizing energy-efficient, high-capacity technologies that provide solutions to the effluent needs of the textile industry, making it a good growth area in industrial applications.
• Climate adaptation in urban flood-prone areas: Regular flooding in urban centers such as Jakarta and Semarang is driving the need for sustainable water treatment units. Tertiary equipment currently necessitates flood-immune designs with automatic controls and swift recovery after inundation. Suppliers are creating elevated or sealed equipment with remote control capabilities to facilitate uninterrupted treatment during extreme conditions. The trend is influencing urban infrastructure spending and expanding the market for durable, intelligent tertiary modules appropriate for climatically exposed areas.
• Integration with intelligent water utilities: Indonesia is experimenting with smart city and water utility projects, notably in Jakarta and Surabaya, such as digital wastewater monitoring and computerized treatment procedures. Tertiary equipment with IoT sensors, SCADA systems, and AI-driven optimization is attracting interest. This improves process control, lowers chemical usage, and enhances discharge quality. Suppliers with real-time analytics and smart interfaces within tertiary systems are best placed to satisfy the digital transformation objectives of water authorities.
• Rural sanitation biological polishing units: To complement rural sanitation schemes, biological polishing systems are now being incorporated into village and peri-urban small-scale STPs. These consist of constructed wetlands, aerobic filters, and natural disinfection channels. Funded by donors and governments, these nature-based tertiary systems provide energy-free, low-cost solutions. They enhance water reuse capability alongside community-level operational capacity. This development is increasing the role of low-tech, sustainable, tertiary equipment in Indonesia‘s decentralized approach to sanitation.
Indonesia‘s tertiary water & wastewater treatment equipment industry is transforming with trends emphasizing tourism sustainability, industrial alignment, climate resilience, and digital utility enhancements. Compact, robust, and smart treatment systems are becoming popular as cities and industries meet regulatory and environmental needs. The trends showcase Indonesia‘s transformation toward localized, sustainable, and future-proof water treatment infrastructure, unleashing new growth horizons in both urban and rural sectors.
Recent Developments in the Tertiary Water & Wastewater Treatment Equipment Market in Indonesia
Indonesia is strengthening its tertiary water & wastewater treatment equipment capacities with strategic projects, global collaborations, and domestic innovations. The nation is upgrading old infrastructure, aiming at better effluent quality, and increasing treated wastewater reuse. Government programs backed by foreign investment are introducing advanced technologies to industrial parks and public treatment facilities. These initiatives are speeding up the use of tertiary equipment for compliance, reuse, and resilience purposes in industrial and municipal sectors.
• ADB-financed wastewater upgrade in Jakarta: With funding provided by the Asian Development Bank, Jakarta‘s municipal wastewater infrastructure is being upgraded with tertiary treatment facilities such as disk filtration and UV disinfection. These upgrades are directed toward enhanced effluent quality before discharge into major rivers. The project is providing new procurement chances for high-capacity, energy-saving tertiary modules. The development also enhances vendor participation in publicly funded infrastructure projects, providing templates for similar rollouts in other urban areas.
• Batam public-private pilot for zero-liquid discharge: A partnership between an Indonesian water utility and a multinational engineering company in Batam has commissioned a pilot Zero Liquid Discharge system in an industrial park. The initiative features tertiary treatment with membrane bioreactors, reverse osmosis, and polishing units for water reuse. This is a move towards sustainable industrial water management. Success with the model is gaining interest from other industrial centers, driving the demand for integrated, reuse-focused tertiary systems designed for export-based industries.
• Tertiary treatment requirements in new SEZs: Recently set up special economic zones (SEZs) in Kalimantan and Sulawesi now need tertiary treatment under environmental clearance. Advanced disinfection and filtration technologies are being integrated by infrastructure developers to make treated effluent suitable for reuse or marine discharge. The requirements are inducing initial investments in high-spec tertiary equipment, providing early-stage market access to vendors supplying pre-engineered systems compliant with regulatory standards.
• Scaling up of CSR-funded sanitation initiatives: Corporate social responsibility (CSR) activities by large palm oil and mining companies are financing rural sanitation projects that feature tertiary polishing steps. These schemes employ small-scale tertiary modules like horizontal wetlands, biofilters, and chlorine disinfection. Equipment needs are increasing in remote villages where small-scale, low-energy systems can be powered with little technical know-how. All these are widening the rural tertiary water & wastewater treatment equipment market, underpinned by corporate investment and community associations.
• Localized manufacturing of tertiary modules: Local businesses have started local production of tertiary components like clarifiers, compact UV disinfection chambers, and dosing units. This has lowered costs and lead times, particularly for eastern Indonesian projects. The transition is consolidating supply chains, promoting system design suited to local conditions, and enhancing the competitiveness of Indonesian-produced equipment. It feeds into the country‘s aspiration for self-sufficiency and facilitates quicker deployment on a series of water management projects.
Indonesia‘s tertiary water & wastewater treatment equipment market is witnessing significant developments impelled by foreign assistance, private funding, regulatory changes, and localized manufacture. Developments in industrial parks, SEZs, urban areas, and rural towns are promoting universal acceptance of advanced tertiary equipment. These developments are increasing infrastructure coverage, improving water reuse, and contributing to national targets for sanitation, sustainability, and climatic resilience.
Strategic Growth Opportunities for Tertiary Water & Wastewater Treatment Equipment Market in Indonesia
Indonesia is rapidly industrializing and expanding urbanistically, causing increasing water contamination and increasing pressure on scarce freshwater resources. The government is encouraging cleaner water through more stringent environmental regulations and better infrastructure. Tertiary wastewater and water treatment systems are increasingly becoming popular as efficient devices for pollution abatement and water reuse. This demand is growing in industries, municipalities, and agriculture. With public health and climate risks increasing, Indonesia offers a number of application-based opportunities for tertiary treatment equipment to address changing sustainability and compliance requirements.
• Reuse of municipal wastewater and urbanization: Indonesia‘s urban areas are growing at a fast rate, putting pressure on municipal water infrastructure. Metropolitan cities such as Jakarta, Surabaya, and Medan are incorporating tertiary treatment to recycle wastewater for urban landscaping, non-potable purposes, and climate resilience. Decentralized and modular tertiary modules achieve environmental requirements and reduce freshwater abstraction. Such systems enable smart city objectives, particularly in flood-prone and water-scarce areas. As an increasing number of municipalities implement reuse programs, the need for compact and effective tertiary systems is continuously growing in new and old urban areas.
• Industrial wastewater recycling within manufacturing areas: Indonesia‘s manufacturing clusters, particularly in West Java and Banten, are turning their attention to water reuse to satisfy environmental requirements and lower costs. Industries such as textiles, automotive, and chemicals are spending on tertiary equipment like membrane filtration and disinfection units. These systems allow treated wastewater to be reused within processes, facilitating resource saving and cost reduction. As industrial parks embrace zero liquid discharge paradigms, tertiary systems form the core of sustainable operations. Policy incentives and expectations for ESG compliance are also driving adoption in large and mid-scale factories.
• Food and beverage industry compliance and efficiency: Indonesia‘s food and beverage industry is on the upswing and is subject to increasingly stringent discharge standards in the Ministry of Environment regulations. Tertiary systems are assisting in ensuring that effluents are of a quality level, particularly for organic material and microbial load. Processed from breweries, plants, and dairy units, breweries are utilizing advanced treatment in order to facilitate the recycling of water and minimize environmental loading. Equipment such as UV systems and ultrafiltration units is being utilized in urban and semi-rural processing centers. This change not only promotes ecological objectives but also increases efficiency in operations and brand image in domestic and export markets.
• Water management in tourism and hospitality: Water-dependent tourist areas such as Bali, Yogyakarta, and Lombok are embracing environmentally friendly water usage to conserve ecosystems as well as ensure quality of service. Large hotels and resorts are implementing tertiary treatment plants in order to recycle wastewater for irrigation purposes, flushing, and cooling. Such installations assist in decreasing freshwater requirements and compatibility with eco-certifications. Decentralized systems are particularly useful for off-grid or coastal regions. As tourist figures rise and concern for environmental protection rises, the hospitality industry offers increasing opportunities for dependable, simple-to-use tertiary equipment to satisfy both compliance and sustainability goals.
• Agricultural runoff treatment and rural reuse: Indonesia‘s farming industry is a significant source of nutrient pollution and is under increasing pressure to control runoff. Tertiary systems are being used to strip surplus nitrogen and phosphorus in animal and aquaculture production facilities. Reclaimed water can be recycled for irrigation, assisting in alleviating water shortages in agricultural areas. Rural water programs backed by governments are also including sophisticated treatment for minor communities. With growing food production and sustainable agriculture gaining traction, tertiary systems are increasingly part of rural water quality management and agricultural resilience.
Indonesia‘s market for tertiary water & wastewater treatment equipment is growing in municipal, industrial, tourism, and agricultural uses. Tertiary systems enable compliance, water reuse, and sustainability goals. Urbanization, environmental control, and the nation‘s susceptibility to water-related issues are fueling robust long-term market opportunities. Compact, modular, and automated systems are particularly becoming popular because of their versatility. With water efficiency at the heart of development as well as public health, tertiary treatment is becoming a centrepiece solution in Indonesia‘s water infrastructure revolution.
Tertiary Water & Wastewater Treatment Equipment Market in Indonesia Driver and Challenges
The tertiary water & wastewater treatment equipment market in Indonesia is influenced by a combination of regulatory, environmental, and economic drivers. Increasing pollution levels, freshwater shortages, and infrastructure development are driving robust demand. Simultaneously, market expansion is constrained by fiscal limitations, technical skills deficit, and operational inefficiencies. Government reform is driving industries and municipalities toward improved water management. Nevertheless, narrowing the gap between policy and practice continues to pose a problem. Comprehension of the primary drivers and challenges is important to grappling with this changing market and realizing future possibilities for tertiary equipment deployment.
The factors responsible for driving the tertiary water & wastewater treatment equipment market in Indonesia include:
• Increasing water pollution and regulatory enforcement: Indonesia‘s surface water sources are getting increasingly polluted by untreated wastewater from urban, industrial, and agricultural sectors. Regulations have been strengthened under the Ministry of Environment and Forestry by the government. Tertiary treatment systems are required to eliminate nutrients, microorganisms, and remaining contaminants. Enforcement is increasing through obligatory compliance audits and sanctions. All these regulations are accelerating demand for standardized, efficient treatment technologies in various sectors, particularly in urban regions and major industrial belts.
• Industrial growth and compliance requirement: Indonesia‘s industrial base is expanding at a rapid rate, driven by foreign investment and infrastructure growth. With this expansion comes higher water usage and effluent discharge. Tertiary solutions ensure that industries comply with national discharge standards and prevent environmental fines. Internal water recycling is also enabled, which reduces operational costs and raises sustainability rankings. Industrial parks in Java and Sumatra are now needing treatment upgrades, driving market growth. Export-oriented companies face additional pressure to adopt international environmental standards, reinforcing the role of tertiary systems.
• Climate change and water scarcity: Climate variability and extreme weather are exacerbating water scarcity in Indonesia, especially during extended dry periods. Tertiary systems facilitate climate adaptation through water reuse and decentralized supply. In locations with unreliable water supplies, the systems minimize reliance on groundwater and surface water. This is especially important for agriculture, tourism, and water-stressed industries. As climate effects expand, tertiary treatment becomes a mainstay in national water resilience plans, generating steady demand for high-efficiency and compact systems.
• Urbanization and decentralized water infrastructure: Accelerating urbanization is adding to the burden on Indonesia‘s current water infrastructure. Centralized treatment capacity is missing in most cities, resulting in health and environmental hazards. Tertiary systems provide decentralized treatment that can be applied in housing estates, institutions, and industrial parks. Such systems provide consistent performance in small footprints and assist local authorities in achieving service and environmental ambitions. Urban planning regulations now accommodate provisions for local water recycling, which improves the business case for tertiary systems.
• Rising awareness and sustainability initiatives: Public and corporate consciousness on sustainability is increasing in Indonesia. Eco-certification, ESG disclosure, and green building projects are stimulating investment in water-saving equipment. Tertiary treatment fits into these movements by providing safe reuse of wastewater and meeting environmental regulations. Industries and institutions that aim to enhance their sustainability profile are embracing leading-edge systems. This social trend towards green processes is supporting market drivers and increasing demand across a variety of segments, particularly in urban and coastal areas.
Challenges in the tertiary water & wastewater treatment equipment market in Indonesia are:
• Limited technical capacity and operator skills: Sophisticated tertiary systems need trained staff to design, install, and maintain them. Indonesia suffers from a lack of technical skills, particularly in rural and urban areas. System performance is undermined, and maintenance problems rise if there is no training. Capacity shortages among small users hamper take-up. The establishment of skilled personnel and the provision of technical support services are essential to maintaining equipment effectiveness and wider take-up.
• Financial obstacles and high initial investment: Tertiary schemes require substantial capital outlay, particularly for smaller municipalities and medium-sized industries. Cost of operation like membrane replacement, power, and chemical dosing discourage uptake. Financing opportunities are poor in certain regions, thereby causing delays in implementation. While long-term water reuse savings are obvious, upfront costs are a major hindrance. Government subsidization and financing plans must be put in place to promote greater uptake.
• Asymmetric infrastructure and regulatory enforcement: Regulations are in place but poorly enforced across provinces. Variable oversight and monitoring make it more challenging to guarantee consistency in compliance. Institutional capacity is weak in some areas to enable tertiary system deployment. This infrastructure and governance asymmetry impacts market development. Provincial support programs and coordination at the national level are needed to bridge this fragmentation and unleash greater demand.
Indonesia‘s tertiary water & wastewater treatment equipment market is expanding in response to pollution control requirements, climate resilience, and industrial compliance. Urban development, regulations, and awareness and sustainability objectives are driving demand, while financing obstacles, skill gaps, and uneven infrastructure continue to inhibit pace. Overcoming these with improved governance, incentives, and capacity building will deliver long-term expansion. Tertiary systems will take a leading role in Indonesia‘s push toward water security and environmental protection.
List of Tertiary Water & Wastewater Treatment Equipment Market in Indonesia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, tertiary water & wastewater treatment equipment companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the tertiary water & wastewater treatment equipment companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
Tertiary Water & Wastewater Treatment Equipment Market in Indonesia by Segment
The study includes a forecast for the tertiary water & wastewater treatment equipment market in Indonesia by equipment and application.
Tertiary Water & Wastewater Treatment Equipment Market in Indonesia by Equipment [Analysis by Value from 2019 to 2031]:
• Tertiary Clarifier
• Filter
• Chlorination Systems
Tertiary Water & Wastewater Treatment Equipment Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:
• Municipal
• Industrial
• Others
Features of the Tertiary Water & Wastewater Treatment Equipment Market in Indonesia
Market Size Estimates: Tertiary water & wastewater treatment equipment in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Tertiary water & wastewater treatment equipment in Indonesia market size by equipment and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different equipment and application for the tertiary water & wastewater treatment equipment in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the tertiary water & wastewater treatment equipment in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the tertiary water & wastewater treatment equipment market in Indonesia?
Answer: The major drivers for this market are the water scarcity/lack of freshwater resources, the growth in industrial water consumption & discharge, and the increasing government initiatives to provide safe drinking water.
Q2. What are the major segments for tertiary water & wastewater treatment equipment market in Indonesia?
Answer: The future of the tertiary water & wastewater treatment equipment market in Indonesia looks promising with opportunities in the municipal and industrial markets.
Q3. Which tertiary water & wastewater treatment equipment market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that filter segment is expected to witness the highest growth over the forecast period due to its quality of eliminating any remaining suspended contaminants from the wastewater.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the tertiary water & wastewater treatment equipment market in Indonesia by equipment (tertiary clarifier, filter, and chlorination systems), and application (municipal, industrial, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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