{
    "success": true,
    "data": {
        "id": 1664317,
        "msgid": "plastic-prices-surge-expert-says-its-not-just-due-to-middle-east-conflict-1775645641",
        "date": "2026-04-08 16:53:02",
        "title": "Plastic Prices Surge: Expert Says It's Not Just Due to Middle East Conflict",
        "author": "Larissa Huda",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's plastic prices have surged in traditional markets, driven not only by global conflicts leading to the potential closure of the Strait of Hormuz but primarily by the country's heavy reliance on imported raw materials, making domestic prices highly vulnerable to international fluctuations. Economic expert M Rizal Taufikurahman highlights that 50-60% of plastic raw materials are imported, mostly from conflict-affected regions, while local production capacity remains insufficient, resulting in a 30-50% price hike in packaging, especially for food and beverages. This structural issue amplifies external shocks, including a 40-45% rise in naphtha prices and weakening exchange rates, underscoring the need for greater industrial resilience to mitigate ongoing supply chain disruptions.",
        "content": "<p>JAKARTA, KOMPAS.com \u2014 The recent surge in plastic prices in\ntraditional markets is not solely triggered by global conflicts that\ncould lead to the closure of the Strait of Hormuz.<\/p>\n<p>Economic experts assess that this increase stems from structural\nissues, namely Indonesia\u2019s high dependence on imported plastic raw\nmaterials, which makes domestic prices extremely vulnerable to global\nvolatility.<\/p>\n<p>\u201cThe current plastic price surge cannot be reduced merely to the\nimpact of war or the closure of the Strait of Hormuz. That is indeed the\nmain trigger, but the root of the problem is much deeper,\u201d said Economic\nExpert M Rizal Taufikurahman when contacted by Kompas.com on Monday\n(6\/4\/2026).<\/p>\n<p>Rizal stated that around 50 to 60 percent of Indonesia\u2019s plastic raw\nmaterials still rely on imports. Meanwhile, most of these raw materials\ncome from countries now affected by conflicts.<\/p>\n<p>On the other hand, domestic capacity has not yet been able to fully\nmeet industrial needs.<\/p>\n<p>At the global level, naphtha prices, the main raw material for\nplastic, have surged by around 40 to 45 percent in the last month.<\/p>\n<p>This increase in naphtha prices has driven up packaging plastic\nprices in the market by about 30 to 50 percent, particularly in the food\nand beverage sector.<\/p>\n<p>\u201cThis shows that external shocks are directly translated into\ndomestic pressures because our industrial structure is not yet\nresilient,\u201d said Rizal.<\/p>\n<p>The relationship between oil prices and plastic is very strong in the\nshort term. When oil prices rise due to supply limitations from the\nclosure of the Strait of Hormuz, downstream products like polyethylene\nand polypropylene also increase.<\/p>\n<p>At the global level, the rise in these two materials has been\nrecorded at 35 to 38 percent in the latest period.<\/p>\n<p>\u201cThis causes a double shock where global prices rise and the exchange\nrate weakens simultaneously,\u201d said Rizal.<\/p>\n<p>The economic expert warned that the plastic price increase is not\ntemporary and should not be taken lightly.<\/p>\n<p>Global supply chain disruptions due to conflicts not only affect\ndistribution but also production, including disruptions to oil\nrefineries in the conflict-ridden Middle East region.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/plastic-prices-surge-expert-says-its-not-just-due-to-middle-east-conflict-1775645641",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}