Business Owners Concerned Over Production Disruptions as Raw Material Supplies Begin to Tighten

Jakarta - The Indonesian Employers’ Association (Apindo) is beginning to be wary of new pressures resulting from the US-Israel conflict with Iran. Disruptions to supply chains are deemed potentially to hinder industrial production.

Chair of Apindo’s Labour Affairs Division, Bob Azam, stated that dependence on imported raw materials makes business actors vulnerable. This situation is exacerbated by the weakening economy.

“In the midst of the weakening economy, and also the Iran war era, the supply chain is also starting to be limited, yes. We don’t know, in April or May, whether we can still produce or not. This is the situation we are facing now,” said Bob during the Panja Meeting with Commission IX of the DPR, Tuesday (14/4/2026).

Bob assessed that business actors have yet to ensure the continuity of production in the next one to two months. Uncertainty is increasing along with the limited supply of imports.

He exemplified the scarcity of plastic raw materials that is beginning to occur. This condition is driving up prices and pressuring production activities in several industries.

Plastic is an important component, especially for the food and beverage industry as packaging material. The impact has already been felt by many business actors.

Apindo hopes that pressures on the workforce remain under control. Entrepreneurs also request policy support to maintain business continuity.

“The role of entrepreneurs is to be able to absorb the increases by improving productivity. The role of the government is to carry out debureaucratisation, yes, simplifying permits. The role of workers is to work together with entrepreneurs to anticipate things like this,” emphasised Bob.