Industry Minister Agus Gumiwang Kartasasmita has emphasised that the\ngovernment is continuously working to diversify raw materials and\npromote recycling to maintain national plastic availability amid global\ngeopolitical pressures. Responding to fluctuations in plastic raw\nmaterial prices and supplies, Agus explained in a statement confirmed in\nJakarta on Wednesday (8\/4\/2026) that the escalation of conflict in the\nMiddle East has affected the global petrochemical industry supply chain,\nparticularly for naphtha, the main raw material for plastics.<\/p>\n
\u201cThe escalation of conflict in the Middle East has triggered supply\ncorrections in industrial sectors dependent on naphtha as the primary\nraw material. Given that plastic is a derivative product of\npetroleum-based petrochemical processes, disruptions in global\ndistribution and production routes are indeed pressuring upstream cost\nstructures,\u201d he said.<\/p>\n
In response, the Ministry of Industry (Kemenperin), together with\nupstream petrochemical industry players, is taking several strategic\nsteps to ensure the continuity of domestic production, one of which is\nexpanding raw material supply sources.<\/p>\n
\u201cThe industry is actively exploring naphtha supplies from countries\noutside the Middle East region to reduce regional dependency,\u201d Agus\nstated.<\/p>\n
Additionally, the optimisation of LPG use is being implemented as a\nbuffer raw material in the production process.<\/p>\n
\u201cLPG use is being optimised as a buffer raw material to cover naphtha\nsupply shortages,\u201d he added.<\/p>\n
On the other hand, they are also encouraging the increased use of\nhigh-quality recycled plastic as a raw material substitute.<\/p>\n
\u201cThe government is encouraging the increased use of recycled plastic\nor high-quality recycled plastic as a supply substitute to maintain\nstock stability in the market,\u201d he clarified.<\/p>\n
Regarding the issue of stock limitations reportedly sufficient only\nuntil May, Agus assured that the industry condition is still in an\nexpansion phase.<\/p>\n
Based on data from the Manufacturing Confidence Index (IKI), the\npackaging industry subsector in March 2026 showed very high performance,\nso plastic product stocks are deemed sufficient.<\/p>\n
\u201cSupply security efforts continue to run in parallel,\u201d he\nstressed.<\/p>\n
Nevertheless, he acknowledged price corrections at the production\nlevel in line with rising global raw material costs. However, the\ngovernment ensures that product availability remains maintained.<\/p>\n
\u201cThere is indeed a price correction at the production level due to\nrising global raw material costs,\u201d the Industry Minister said.<\/p>\n
\u201cThe public and downstream industries need not panic because plastic\nproducts are assured to still be available in the market. The government\nis committed to ensuring no stock shortages by optimising various\nalternative supply channels,\u201d Agus revealed.<\/p>\n
Furthermore, they are strengthening synergy with manufacturing\nindustry players to anticipate the impact of global supply chain\ndisruptions. This step is taken to maintain national industry resilience\nwhile ensuring that domestic and export needs continue to run\noptimally.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/plastic-prices-surge-industry-minister-prepares-recycled-raw-materials-1775641925", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }