Experts Highlight Plastic Packaging Costs Driving Up Cooking Oil Prices

The skyrocketing price of plastic packaging has become one of the main factors triggering the rise in cooking oil prices in the market. Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, assesses that the increase in domestic cooking oil prices is difficult to avoid as it is dragged down by the surge in plastic packaging costs.

She explains that the rise in plastic packaging prices originates from upstream sources due to pressures from geopolitical instability and disruptions in the distribution chain. According to Esther, plastic packaging prices will push national industry players to seek more efficient packaging alternatives as a long-term solution. “This also triggers the use of more efficient packaging due to the rising plastic costs,” she said in Jakarta on Monday (27/4/2026).

Esther states that the government should take appropriate handling measures. This is considering that the rise in cooking oil prices has the potential to trigger inflation, increase household living costs, and burden culinary SMEs due to increased production costs.

Esther mentions that on a macro level, the rise in cooking oil prices could drive inflation, reduce public consumption levels, and restrain domestic economic growth. “The burden of daily household expenditure is potentially increasing because cooking oil is a staple need that cannot be postponed,” she said.

Executive Director of the Center of Reform on Economics (CORE), Mohammad Faisal, states that the rise in domestic cooking oil prices needs to be handled seriously by the government. He reminds the government to closely monitor the cooking oil supply chain.