Food and Beverage Industry Plastic Stock Dwindling
The Ministry of Industry states that the stock of plastic raw materials for the food and beverage industry is estimated to be sufficient for only the next two months. This situation is beginning to cause concern among industry players, particularly regarding supply sustainability and price increases.
Director of Agro Industry at the Ministry of Industry, Putu Juli Ardika, said that in terms of availability, the stock is still safe for the time being. However, plastic prices are rising due to uncertainties in the global energy supply triggered by conflicts in the Middle East.
“ The food and beverage industry is worried about future stocks, as currently only up to two months remain,” Putu said during a question-and-answer session at the Ministry of Industry office in Jakarta on Tuesday, 21 April 2026.
Based on the results of a meeting with producers, Putu explained that plastic raw materials had previously faced supply constraints, but they are now available again. According to him, the government is now focusing on ensuring smooth supply while curbing price surges.
One proposal being studied is the exemption of import duties on LPG for the plastic industry. “ This is what the Minister proposed, how to temporarily waive the import duties,” Putu said.
The pressure on plastic prices is inseparable from global conditions. Around 70 percent of naphtha supplies—the main raw material for plastic—come from the Middle East. Disruptions in the energy supply chain from that region have caused naphtha prices to soar, thereby driving up plastic resin prices. The impact is directly felt by various industrial sectors, particularly those dependent on packaging such as food and beverages, FMCG, pharmaceuticals, logistics, and retail.
Chairwoman of the Indonesian Employers Association, Shinta Kamdani, warned that the surge in plastic raw material prices could pressure the business world and the workforce. She stated that the current price increases have exceeded normal fluctuation patterns.
According to Shinta, naphtha has risen by nearly 45 percent, followed by a 60 percent increase in PET resin. This situation has led packaging supplier factories to reduce production capacity by around 20-30 percent, while packaging prices have jumped between 100 and 150 percent.
Meanwhile, Minister of Trade Budi Santoso said the government is seeking alternative supplying countries for plastic raw materials to maintain supply and price stability. So far, Indonesia has been heavily reliant on naphtha supplies from the Middle East. However, global conditions have disrupted distribution, and competition between countries is becoming increasingly tight.
“ Now we have alternatives from Africa, India, and America,” Budi said on Thursday, 16 April 2026, as quoted from Antara.