The Ministry of Industry is encouraging food and beverage industry\nplayers to increase the use of paper-based packaging as an alternative\nto plastic. Director General of Agro Industry at the Ministry of\nIndustry, Putu Juli Ardika, stated that this step is effective in\nreducing dependence on plastic amid rising prices.<\/p>\n
The increase in plastic prices is driven by disruptions in naphtha\nsupplies from the Middle East due to the escalation of the Iran-Israel\nconflict, which impacts the global petrochemical industry. \u201cWe are\npromoting paper-based packaging because many food and beverage\nindustries can still utilise this packaging,\u201d Putu said during a media\nbriefing at the Ministry of Industry office on Tuesday, 21 April\n2026.<\/p>\n
According to him, in terms of price, paper-based packaging is\nactually quite competitive. However, its development heavily depends on\nthe readiness of the industrial ecosystem and investments in that\nsector. \u201cThis could become the game changer,\u201d he said.<\/p>\n
Putu explained that currently around 48 percent of food and beverage\nindustry packaging is still plastic-based, while paper packaging usage\nhas reached about 28 percent.<\/p>\n
With that portion, he assesses that paper packaging is already widely\nused in Indonesia. In addition, this type of packaging is also\nconsidered to have good durability to maintain product quality. \u201cLike\nfor milk, juice, and many other products. It\u2019s already competitive,\u201d he\nsaid.<\/p>\n
Previously, Putu said that plastic raw material stocks for the food\nand beverage industry are available for the next two months. This\nsituation has made industry players start to worry about future plastic\nsupplies.<\/p>\n
Based on a meeting of the Ministry of Industry with plastic\nproducers, Putu stated that plastic raw materials are now available\nagain. Previously, he said, plastic pellet stocks had indeed been\ndelayed, but now they are available again. \u201cNow it\u2019s available and\nthere\u2019s no worry. Well, the concern is that prices will rise.\u201d<\/p>\n
He stated that the most important thing now is to ensure supply\navailability. To suppress prices, he said there are several proposals\nfrom the Ministry of Industry to industry players.<\/p>\n
One of them is the exemption of import duties on LPG for the plastic\nindustry. \u201cThis is what the Minister proposed, how for the time being\nthe import duties can be waived,\u201d he said.<\/p>\n
Geopolitical tensions disrupting energy supply chains have caused\nplastic prices to soar. Around 70 percent of global naphtha supplies\ncome from the Middle East. Naphtha is a liquid processed from crude oil\nthat serves as the main raw material in the petrochemical industry for\nproducing plastic.<\/p>\n
The rise in plastic resin prices exerts direct and significant\npressure on business operational costs, particularly in sectors heavily\nreliant on packaging such as food and beverages, FMCG, pharmaceuticals,\nlogistics, and retail.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/why-the-food-industry-needs-to-switch-to-paper-packaging-1776775855", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }