Indonesian Political, Business & Finance News

ID FOOD Complains to DPR Over Plastic Shortage Difficulties: What About Bulog?

| Source: CNBC Translated from Indonesian | Trade
ID FOOD Complains to DPR Over Plastic Shortage Difficulties: What About Bulog?
Image: CNBC

Jakarta, CNBC Indonesia - The President Director of PT Rajawali Nusantara Indonesia (Persero), or ID FOOD, Ghimoyo, has complained to the Indonesian House of Representatives (DPR RI) about the surge in prices and scarcity of plastic raw materials that are beginning to disrupt food industry operations. This complaint was voiced during a Working Meeting and Hearing with Commission IV of the DPR RI on Tuesday (7/4/2026).

The complaint is not without reason. Ghimoyo stated that the scarcity of plastic raw materials is now being felt directly at the factory level and has the potential to disrupt the food distribution chain.

“We are facing difficulties. What is currently being felt by us as food industry players is the difficulty in obtaining packaging (plastic),” said Ghimoyo.

He explained that almost the entire food sector relies on plastic-based packaging, from rice sacks to cooking oil packaging. Therefore, when the supply of raw materials is disrupted, the effects can be widespread.

“So, all factories are starting to feel the scarcity of plastic pellets. This is more crucial because it affects all food, all fertiliser, all rice using plastic sacks,” he clarified.

“Then, kilo packaging, cooking oil packaging also uses the same materials,” he continued.

This means that the plastic issue is not just a packaging industry concern but directly impacts the distribution of basic necessities. This is the basis for ID FOOD bringing the matter to the DPR, as the impact could be systemic for the food sector.

However, to date, according to Ghimoyo, the impact remains at the upstream side, namely the supply of packaging materials, and has not yet spread to the prices of end products.

“We don’t know yet, because it’s only this. There’s only this scarcity. Supply scarcity,” said Ghimoyo when met after the meeting.

He explained that the disruption is occurring because production partners (maklon) supplying packaging are starting to struggle to obtain plastic raw materials.

“So, we use maklon. We have several suppliers for making plastic, packaging, and so on, and they say they’re short of materials,” he revealed.

Nevertheless, ID FOOD cannot yet confirm whether this situation will lead to price increases for food products.

“Not yet (can confirm if food prices will rise). The potential, we don’t know. It hasn’t reached that point,” he emphasised.

Internally, the most felt impact is at the company’s sack production facilities, although their national contribution is not significant.

“It’s just an effect at our factory. We have a sack factory. But nationally, ours is very small,” he said.

What about Bulog?

On the other hand, the President Director of Perum Bulog, Ahmad Rizal Ramdhani, stated that conditions at his company are still relatively under control. He acknowledged that the plastic issue is currently a focus of the government, but its handling falls under the Ministry of Industry (Kemenperin).

“So, the point is this. Plastic is being discussed by the Ministry of Industry. So, it’s probably not our field to explain that. But the condition might be better explained by the Ministry of Industry,” said Rizal when contacted separately.

Unlike ID FOOD, which is starting to feel supply disruptions, Bulog claims to still have sufficient plastic stocks for current needs.

“Fortunately, Bulog still has stocks to meet plastic requirements. But going forward, we need to take anticipatory steps,” he said.

As it carries out public service obligations (PSO), Bulog also assures that this situation has not yet impacted the prices of distributed rice.

“As ours is a PSO product, rice for the people, not commercial, and currently we still have stocks (of plastic). That’s all I can say for now,” he explained.

Previously, the surge in plastic prices and shortages had already been complained about by industry players. Plastic prices in the market are said to have “soared” and stocks are increasingly hard to obtain, raising concerns across various sectors.

This pressure is triggered by escalating geopolitical tensions in the Middle East, which are affecting the global supply of petrochemical raw materials. Domestic industries that still rely on imports are beginning to feel the impact.

Separately, the Secretary General of Inaplas, Fajar Budiono, previously revealed the high dependence on imports as the main challenge.

“For naphtha, the need is 3 million tonnes per year and 100% imported. For plastic raw materials like PE (Polyethylene), PP (Polypropylene), PET (Polyethylene Terephthalate), PS (Polystyrene), and PVC (Polyvinyl Chloride) and others, around 8 million tonnes, with 50% still imported,” said Fajar to CNBC Indonesia on Monday (6/4/2026).

Industry players are now seeking alternative supplies from new regions such as Central Asia, Africa, and America, although they face longer delivery times.

“We’ve started communicating with Central Asia, Africa, and America. Clearly, the lead time is longer, the fastest around 50 days. All countries are trying to secure feedstock,” he explained.

Amid this situation, global pressures are seen as potentially becoming a long-term issue. Strategic Research Manager at the Center of Reform on Economics (CORE), Yusuf Rendy Manilet, assessed that the impact heavily depends on the duration of the conflict.

“If we look at this Middle East conflict in a scenario framework, the key is actually the duration. As long as the conflict is related to strategic objectives like political pressure or regime change, it’s unlikely to resolve quickly. That means what we’re facing is not just short-term volatility, but pressure that could turn more structural,” said Yusuf.

He emphasised the importance of policy support to sustain the industry, including measured fiscal incentives and policy relaxations.

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