Can Seaweed and Cassava Replace Plastic Raw Materials?

Minister for Micro, Small, and Medium Enterprises (UMKM) Maman Abdurrahman stated that geopolitical tensions involving Iran against the combined forces of the United States (US) and Israel have disrupted global supply chains, particularly shipping logistics. As a result, plastic pellet prices have risen significantly. “Plastic raw materials are plastic pellets, which come from naphtha. Most of the supply comes from Middle Eastern countries. With this conflict, it’s naturally hampered, which is why the price has risen significantly,” Maman said at the Smesco Building in South Jakarta on Thursday (9/4/2026). To dampen price fluctuations domestically, the government has prepared short-term solutions. The main focus is diverting import sources to other countries deemed geopolitically safe. Maman mentioned at least three countries that will become new suppliers: Africa, India, and the United States (US). “Now we’re already getting supplies from Africa, India, and America. The administrative processes, shipments, and so on are underway,” Maman said. Seaweed-Cassava as Imported Plastic Raw Materials? Meanwhile, on the same occasion, Maman viewed this situation as an opportunity by shifting plastic raw materials from imports to seaweed and cassava. However, plastic from seaweed is considered expensive due to its small production scale. For this reason, they will push policies for industrialisation that favour market demands so that production costs can be reduced. “One of them that has been researched and studied, which we’re about to explore, is from seaweed. Seaweed can actually become a plastic raw material, but so far it’s been considered too expensive,” Maman said. According to Maman, there are already several small and medium UMKM categories starting to produce plastic from seaweed and cassava. Unfortunately, their products are mostly absorbed by foreign markets. “Later we will try to do it, we will call some small and medium enterprises, and we will encourage it on a larger scale, so that the production cost of plastic from seaweed raw materials, from cassava too, but the one that’s already there is seaweed,” Maman explained. Plastic Prices Skyrocketing As is known, traders in traditional markets are starting to limit the use of plastic bags. This is done to reduce fixed business capital amid rising plastic prices due to the war in the Middle East. This condition certainly has a significant impact on plastic product buyers in the market, most of whom are food traders or canteen owners. Because this price increase directly causes their trading capital to rise rapidly. One of them is Bagas, a Javanese noodle seller who often buys plastic food containers or thinwall for takeaway purchases. He said this price increase has been felt for about two weeks, but at that time the rise wasn’t as severe as now. “Now it’s bad, usually I buy for Rp 20,000 - 25,000, now Rp 40,000,” said Bagas when buying thinwall at Gondangdia Market on Thursday (9/4/2026). In the end, he admitted that at his stall, for takeaway purchases, an additional fee of Rp 2,000 per package is charged. Meanwhile, for dine-in, the prices remain the same and unchanged.