Global Supply Chain Disruption Puts Toyota Indonesia Factories on Alert
JAKARTA - Global geopolitical tensions involving Iran, Israel, and the United States are beginning to pressure industrial supply chains, particularly in terms of petroleum-derived raw materials such as plastics.
Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN) Bob Azam stated that, up to now, the supply chain disruptions have not affected domestic vehicle distribution.
“Not yet. Up to now, we can still maintain it until April,” Bob said in Jakarta on Tuesday (14/4/2026).
“But if in May, we’ll see how much the supply chain disruption affects us. And the impact will be very significant,” he added.
According to Bob, one of the biggest challenges currently comes from petrochemical raw materials like naphtha, which is the basis for plastic production.
“But petroleum-derived products like naphtha are indeed quite difficult. Plastics, yes,” Bob remarked.
He hopes that the pressure on raw material supplies can be alleviated by optimising the capacity of existing petrochemical plants.
“But I hope it can be stabilised with the existing petrochemical plants,” he said.
Meanwhile, for other crucial components like semiconductors, Bob assured that no significant disruptions have occurred.
“Not yet. Hopefully, it doesn’t reach a crisis, right? Otherwise, we’ll be producing vehicles without semiconductors,” he quipped.
These pressures are triggered by rising oil prices, supply chain disruptions, and geopolitical uncertainties that are driving up plastic packaging production costs.
On the other hand, the increase in plastic prices is also becoming a concern for the national automotive industry, given that the material is still used in various vehicle components.
Deputy Marketing Director of PT Astra Daihatsu Motor (ADM) Rokky Irvayandi said that the rise in plastic prices does have an effect, but it has not directly impacted car selling prices.
“If plastic prices rise, there is certainly an influence. However, whether it directly affects car prices is different because many other components also play a role, not just plastics,” Rokky stated.