The Indonesian government is seeking new sources of plastic raw\nmaterials amid a global crisis triggered by supply chain disruptions\nfrom conflicts in the Middle East region.<\/p>\n
Trade Minister Budi Santoso stated that Indonesia has long relied on\nimports of naphtha as the raw material for plastic pellets from the\nMiddle East. However, supplies from that region are currently disrupted\ndue to the impact of war.<\/p>\n
\u201cSo plastic raw materials are indeed imported; for plastic pellets,\nit\u2019s naphtha from the Middle East so far. Because of the war\u2019s impact,\nsupplies from there are automatically disrupted,\u201d Budi said when met at\nthe Office of the Coordinating Ministry for the Economy in Jakarta on\nMonday.<\/p>\n
As a short-term mitigation step, the government is beginning to seek\nalternative supplies from several countries such as India, the United\nStates (US), and the African region.<\/p>\n
\u201cSo we have already communicated with producers; we have indeed\nobtained some, but the quantities might be limited or it may take time\nbecause of the switch, and now shipping conditions due to the war are\nalso somewhat slow,\u201d he said.<\/p>\n
Budi added that the government is also coordinating with trade\nrepresentatives abroad to help find alternative supply sources from\nother countries.<\/p>\n
On the other hand, he acknowledged that the current plastic raw\nmaterial crisis is global in nature. Several producer countries such as\nTaiwan, South Korea, Thailand, Vietnam, and Singapore are also\nexperiencing the same production disruptions.<\/p>\n
\u201cImports from those three countries are already being processed. But\nit takes time. So right now, we\u2019re still managing with existing stocks,\u201d\nhe said.<\/p>\n
In this regard, the government is striving to accelerate the arrival\nof new supplies to allay concerns among business actors and traders who\nare beginning to be affected by rising plastic prices.<\/p>\n
Nevertheless, Budi could not yet confirm when plastic prices would\nstabilise again. Because this situation very much depends on\ndevelopments in the global situation as well as the smoothness of\nsupplies from alternative countries.<\/p>\n
Meanwhile, plastic prices in the market have risen sharply by around\n30-40 percent as of April 2026, mainly caused by the surge in naphtha\nraw material prices due to geopolitical conflicts in the Middle\nEast.<\/p>\n
Disruptions in the Strait of Hormuz are hindering crude oil supplies,\nwhich are the basic material for making plastic pellets. High dependence\non imported raw materials has caused the price of end products to also\nskyrocket.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-seeks-new-plastic-raw-material-supplies-amid-global-crisis-1776077486", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }