{
    "success": true,
    "data": {
        "id": 1677514,
        "msgid": "business-leader-warns-that-impact-of-plastic-price-hike-could-become-even-more-unpredictable-1776178247",
        "date": "2026-04-14 20:50:33",
        "title": "Business Leader Warns That Impact of Plastic Price Hike Could Become Even More Unpredictable",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Business",
        "summary": "Indonesian business leaders have cautioned that the recent surge in plastic raw material prices, which has risen by 25% to 100% since early April 2026, is significantly affecting industries reliant on plastic packaging, particularly the bottled water sector where production costs have increased by 35% to 45%. Apindo's labour sector head, Bob Azam, highlighted the broad potential impacts across products using plastic packaging and urged companies to avoid layoffs in response to rising costs, while also seeing opportunities for innovation in substitute materials. This development underscores the vulnerability of Indonesia's manufacturing base to global supply chain fluctuations and the need for sustainable alternatives in the packaging industry.",
        "content": "<p>Business leaders have revealed that the increase in plastic raw\nmaterial prices is already impacting industries in Indonesia,\nparticularly those using plastic packaging.<\/p>\n<p>Apindo\u2019s Head of Labour Affairs, Bob Azam, acknowledged the potential\nfor such impacts and noted that they could have widespread effects\nbecause nearly all products use plastic packaging.<\/p>\n<p>Nevertheless, they hope that companies will not resort to layoffs as\na response to the cost pressures arising from the rise in plastic raw\nmaterial prices.<\/p>\n<p>\u201cIndeed, this plastic price increase has the potential for broad\nimpacts, as most use plastic packaging. But if possible for companies,\ndo not do layoffs, do not rush into layoffs,\u201d said Bob Azam when met by\nreporters at the DPR RI building on Tuesday (14\/4\/2026).<\/p>\n<p>They also see opportunities to develop substitute materials as an\nalternative to plastic. According to him, every pressure in the industry\ncan open up space for new innovation.<\/p>\n<p>\u201cYes, certainly, every pressure creates opportunities, opportunities\nto foster new innovations. We are working to develop substitute\nmaterials as an alternative to plastic,\u201d explained Bob.<\/p>\n<p>Previously, the General Chairman of the Bottled Drinking Water\nAssociation\/AMDK Nusantara (Amdatara), Karyanto Wibowo, stated that the\nincrease in plastic raw material prices has seriously impacted the AMDK\nindustry, as the majority of its packaging still uses plastic.<\/p>\n<p>\u201cThe current increase in plastic raw material prices has a\nsignificant impact on the AMDK industry, because almost all AMDK\npackaging uses plastic, especially polyethylene terephthalate (PET)\nresin for bottles, high-density polyethylene (HDPE) for gallons, and\npolypropylene (PP) for caps and labels,\u201d said Karyanto.<\/p>\n<p>He admitted that plastic material prices have risen by around 25% to\n70%, with some even increasing by up to 100%, causing production costs\nto swell by up to 45%.<\/p>\n<p>\u201cPET resin prices and other supporting plastic materials have surged\nbetween 25% and 70%, even reaching 100% for some types of material since\nearly April 2026. As a result, overall AMDK production costs have\nincreased between 35% and 45%,\u201d he continued.<\/p>\n<p>Karyanto added that plastic is the highest production cost component\nafter water itself. \u201cPlastic is the second largest production cost\ncomponent after the water itself, so this increase can no longer be\nfully absorbed by producers,\u201d he explained.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/business-leader-warns-that-impact-of-plastic-price-hike-could-become-even-more-unpredictable-1776178247",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}