Jakarta (ANTARA) - The Indonesian Plastic Recycling Association\n(ADUPI) emphasises its readiness to strengthen national plastic raw\nmaterials amid global geopolitical pressures that are triggering price\nincreases and supply disruption risks.<\/p>\n
ADUPI Executive Director Hadiyan Fariz stated in a written release\nreceived in Jakarta on Friday that the recycling industry has become an\nimportant part of the national plastic raw material supply system.<\/p>\n
According to him, in conditions of high import dependency, the\npresence of recycled materials is seen as capable of providing a more\nstable support because it is based on domestic resources.<\/p>\n
\u201cThe plastic recycling industry has played a real role in supporting\nnational raw material needs,\u201d he said.<\/p>\n
He explained that currently around 70 percent of national naphtha\nneeds still come from imports, while finished plastic raw materials in\nthe form of virgin resin also remain dependent on imports by 40-50\npercent.<\/p>\n
This situation makes the domestic market vulnerable to global price\nfluctuations and geopolitical dynamics, including in the Strait of\nHormuz region.<\/p>\n
On the other hand, the recycling industry has contributed 20 percent\nto the total national plastic raw material supply. And, according to\nhim, this figure shows that its role is no longer merely complementary\nbut has become one of the important pillars in maintaining the\nsustainability of the industry.<\/p>\n
In addition to supporting supplies, the industry is also seen as\ncapable of maintaining price stability at the downstream level by\nproviding more controlled alternative raw materials.<\/p>\n
He said the recycling industry has the potential to suppress\nproduction cost increases that could impact consumer product prices,\nincluding food packaging and daily necessities.<\/p>\n
According to Hadiyan, strengthening the recycling industry is also\nrelevant in maintaining people\u2019s purchasing power because it can dampen\ncost-push inflation.<\/p>\n
Moreover, the sector supports the sustainability of MSMEs and forms\npart of the people\u2019s economy with an economic contribution of around USD\n9.2 billion and significant labour absorption.<\/p>\n
In terms of capacity, the recycling industry still has ample room for\ndevelopment. Currently, there are 749 companies with an installed\ncapacity of around 3.16 million tonnes per year, but the utilisation\nrate is only 48 percent, indicating significant opportunities to\nincrease its contribution to domestic supplies.<\/p>\n
Looking ahead, he said strengthening the recycling industry will\nfocus on improving the quality and quantity of domestic raw materials,\noptimising capacity utilisation, and strengthening the industrial\necosystem to make it more competitive and sustainable.<\/p>\n
Hadiyan also emphasised that the current global uncertainty presents\nan opportunity to strengthen the role of the recycling industry as a\nstrategic pillar in the resilience of plastic raw materials, while\nsupporting waste management targets and the transition to a circular\neconomy in Indonesia.<\/p>\n
Industry Minister Agus Gumiwang Kartasasmita emphasised that the\ndomestic upstream-downstream plastic industry provides assurance of\nstock availability for domestic needs amid disruptions in the raw\nmaterial supply chain.<\/p>\n
He said that from a meeting between the ministry and the upstream to\ndownstream plastic industry held in Jakarta on Thursday (16\/4), optimism\nemerged regarding the availability of plastic stocks domestically.<\/p>\n
\u201cWe received assurances from the industry that plastic stocks should\nnot be a problem. I underline the word \u2018should\u2019, because the government\ncontinues to monitor global developments closely that impact production\nand stocks in this subsector,\u201d Agus said in a confirmed statement.<\/p>\n
Previously, the Industry Minister also emphasised that the government\ncontinues to strive for raw material diversification and to encourage\nrecycling utilisation to maintain national plastic availability amid\nglobal geopolitical pressures.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/recycling-industry-emphasises-readiness-to-strengthen-national-plastic-raw-materials-1776401453", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }