Business Leader Says Processed Food and Beverage Producers Are Starting to Worry

Jakarta, CNBC Indonesia - Entrepreneurs in the food and beverage industry have spoken out about the impact of rising plastic raw material prices due to geopolitical tensions in the Middle East.

The General Chairman of the Indonesian Food and Beverage Entrepreneurs Association (GAPMMI), Adhi S Lukman, stated that the food and beverage industry is beginning to worry about the effects of the increase in plastic raw material prices.

“The impact from the war in the Middle East, which has led to rising plastic raw material prices. We are starting to worry about the availability of the raw materials because some suppliers say their stocks are becoming limited, and some cannot even meet demand,” Lukman said when contacted by CNBC Indonesia on Tuesday (7/4/2026).

Amid the limited supply of plastic raw materials, price increases of around 30%-60% have already occurred, raising concerns among food and beverage industry players regarding availability and rising raw material costs.

“In addition, they have announced average price increases of 30-60%. This is what is worrying; the most important thing is availability,” he continued.

He added that if raw material prices are rising but supplies are also limited, this could be quite dangerous for the food and beverage industry.

“Prices are rising but goods are not available—this is also dangerous for the industry, so we need to find some kind of solution. Because this is indeed an emergency situation for everyone. In some countries, they have also declared force majeure, and producers are starting to reduce production because there are no raw materials,” he explained.

In fact, the impact of the limited supply of plastic raw materials has already led some food and beverage producers to start raising their product prices. However, he did not specify which producers.

“The difficulty in obtaining plastic raw materials has caused some producers to start increasing their product prices, because they still use plastic packaging. Moreover, plastic is the most efficient packaging compared to other materials like cans and so on,” he said.

Therefore, his side is currently seeking alternative plastic raw material sources from countries other than the Middle East so that producers in the food and beverage industry can survive.

“Of course, we will look for alternative materials for packaging. Whether it will eventually change the packaging or how, but in my opinion, plastic is the most efficient and affordable packaging,” he concluded.