Minister for Micro, Small, and Medium Enterprises (SMEs) Maman\nAbdurrahman stated that the government is preparing a comprehensive\nstrategy to address the surge in plastic prices. The increase in the\nprice of this component has directly impacted the sustainability of SME\nbusinesses, particularly in the food and beverage sector.<\/p>\n
Maman explained that Indonesia\u2019s dependence on imports of plastic raw\nmaterials remains high, at 55%. Of this amount, around 70% of the raw\nmaterial distribution passes through the Strait of Hormuz, which is\ncurrently affected by geopolitical conflicts, thus disrupting the global\nsupply chain.<\/p>\n
\u201cNaphtha, the main raw material for plastic, mostly comes from Middle\nEastern countries. This geopolitical conflict situation is hindering\nnaphtha distribution and driving a significant rise in plastic prices,\u201d\nsaid Maman in Jakarta on Thursday (9\/4).<\/p>\n
Data from the Indonesian Food and Beverage Producers Association in\n2026 shows that naphtha shortages have reduced plastic production\ncapacity, even causing some production lines to halt. This has\nautomatically impacted retail plastic prices, which have risen sharply,\npressuring SME performance with turnover declines of up to 50%.\nMeanwhile, the majority of food and beverage SMEs still rely on plastic\npackaging.<\/p>\n
The domestic plastic packaging industry itself dominates the market\nat 67.61% in 2025, with the food sector as the largest contributor.\nFacing this situation, the government, together with the Ministry of\nTrade, is preparing short-term and long-term measures.<\/p>\n
For the short term, the government is opening alternative naphtha\nsupplies from relatively stable regions such as Africa, India, and the\nAmericas. Administrative processes are being prepared so that raw\nmaterial distribution can proceed immediately.<\/p>\n
Furthermore, this situation presents a strategic opportunity to\nevaluate dependence on imports from high-risk areas, while strengthening\nnational industry resilience through diversification of raw material\nsources.<\/p>\n
On the other hand, the government is also promoting a transformation\ntowards the use of more environmentally friendly alternative raw\nmaterials based on domestic resources. Several materials such as bamboo,\nseaweed, and cassava are considered to have great potential to be\nprocessed into bioplastics as an alternative packaging replacing\nnaphtha.<\/p>\n
\u201cThis is not only a solution to the supply crisis but also an\nopportunity to build a green industry based on local potential,\u201d said\nMaman.<\/p>\n
He added that seaweed and cassava, which are abundant in Indonesia,\nhave actually been utilised as alternative plastic raw materials.\nHowever, market limitations have kept production costs relatively\nhigh.<\/p>\n
Several SMEs have also begun producing seaweed-based plastic, even\npenetrating export markets. The government is committed to strengthening\nsupport for such initiatives to increase production scale and meet\ndomestic needs.<\/p>\n
\u201cIf policies are directed towards strengthening the substitution of\nnaphtha raw materials with seaweed, demand will grow and production\ncosts can be reduced,\u201d said Maman.<\/p>\n
In addition, the development of alternative raw materials also opens\nup new business opportunities for SMEs, while strengthening the\nindustrial ecosystem based on local resources. The Ministry of SMEs\ncontinues to coordinate with related ministries, institutions, and\nregional governments to formulate sustainable strategic steps in\nmaintaining the stability of the national plastic raw material supply\nchain.<\/p>\n
The government is also reviewing various supporting policies,\nincluding subsidies for bioplastic use, strengthening shared packaging\nfacilities, implementing principles of reducing plastic use, as well as\ntraining and assistance to encourage environmentally friendly\nlifestyles.<\/p>\n
On the other hand, the public is urged to play an active role by\nreducing plastic use and increasing recycling practices as part of\ncollective efforts to preserve the environment while reducing dependence\non imported raw materials.<\/p>\n
This increase in capital costs not only erodes profit margins but\nalso potentially disrupts business continuity amid declining consumer\npurchasing power.<\/p>\n
SMEs in Cianjur Regency, West Java, are feeling the impact of rising\nplastic prices. The increase of 80-100% has directly affected production\ncosts.<\/p>\n
Food and beverage business operators are facing pressure due to\nrising plastic packaging prices triggered by global situations,\nincluding conflicts in the Gulf region.<\/p>\n
Experiencing a significant price increase, plastic traders have seen\na substantial decline in turnover.<\/p>\n
The recent rise in plastic prices serves as an indicator of\nincreasing pressure on the global raw material supply chain.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/facing-the-impact-of-rising-plastic-prices-on-smes-this-is-the-governments-strategy-1775757050", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }