Farmers Take Note: Pesticide Producers Signal Price Rises Due to Rising Production Costs
Jakarta — Indonesia’s national pesticide producers have signalled intentions to raise product prices amid soaring production costs triggered by global geopolitical circumstances. Scarcity of raw materials and rising prices of numerous production components have forced the industry to adjust selling prices.
Yanurius Nunuhitu, Chairman of the Indonesian Pesticide Producers Association (APROPI), stated that price increases are unavoidable because most of the industry’s raw materials depend on imports and are highly sensitive to oil price movements.
“Price increases cannot be avoided because our pesticide active ingredients are imported from China, and almost all are sensitive to oil prices. Active ingredient prices have risen since the war began,” Yanurius told CNBC Indonesia on Thursday (12/3/2026).
He explained that active ingredients for pesticides, predominantly imported from China, are significantly influenced by global oil price movements. Since the conflict began, prices of these active ingredients have risen, compressing production costs for the pesticide industry.
Cost pressures also stem from solvents used in pesticide formulation. “Pesticide formulation uses oil-based solvents. Solvent prices have risen by nearly 60% or more,” he said.
Additionally, prices have surged for plastic packaging used for pesticide products. According to him, nearly all pesticide formulations are marketed in plastic packaging, so packaging price increases further amplify production costs.
“Since Chandra Asri declared force majeure, plastic packaging prices immediately rose. Nearly 99% of pesticide formulations are packaged in plastic containers,” he explained.
Yanurius, in a report of APROPI’s meeting results received by CNBC Indonesia, also stated that beyond pressures from scarcity of active ingredients and supporting materials for pesticide formulation, weakening of the rupiah’s exchange rate has further exacerbated production costs for domestic pesticide manufacturers.
“Due to the current geopolitical situation, it has resulted in scarcity of active ingredients and supporting materials for pesticide formulation, as well as weakening of the rupiah,” he noted.
During the meeting, APROPI members agreed to increase pesticide product selling prices by approximately 20% to 30% across all goods, including products previously classified as slow-moving items. Additionally, producers decided to shorten payment periods and implement cash payment schemes.
Yanurius cautioned that surging pesticide prices risk triggering an increase in circulation of counterfeit products or substandard quality products in the market.
“Usually when prices are high, there will be many counterfeit products and products below quality standards. We hope the government will protect farmers by monitoring the quality of pesticides in circulation,” he said.
He added that rising pesticide prices will ultimately impact farmers’ production costs. Therefore, the government is expected to prepare mitigation measures so that the burden borne by farmers does not increase further.
“Farmers’ production costs will increase; the government needs to implement mitigation,” he concluded.