Indonesia Anticipates Plastic Raw Material Crisis, Targets India to Africa

Trade Minister Budi Santoso has assured that the government is beginning to seek alternative sources for plastic raw materials. This step is being taken to anticipate import disruptions from the Middle East.

The disruptions relate to naphtha supplies, the main ingredient in plastic production.

“Naphtha is imported from the Middle East. So we are affected by the raw materials we import from the Middle East. What are we doing then? We are now looking for alternative replacements or alternatives from other countries,” said Trade Minister Budi after a press conference at the Presidential Staff Office, Jakarta, on Wednesday (1/4/2026).

Naphtha is a hydrocarbon compound derived from petroleum. This material is used to produce plastic resin, rubber, and solvents.

“Indeed, this requires time, because suddenly we have to shift from the Middle East to other countries. So we hope this process can run well, so that prices can return to normal,” Budi stated.

The Ministry of Trade has also communicated with associations and industry players. Coordination is being carried out to ensure supplies remain stable.

Indonesian representatives abroad are also involved. They are asked to help find new supply sources.

Singapore, China, South Korea, Thailand, and Taiwan are experiencing the same disruptions in the plastic raw material supply chain.

“But for raw materials, we continue to do so that domestic production returns to normal and plastic supplies are well maintained,” Budi said.

Supply security measures are also being taken by other countries. South Korea, for example, has banned naphtha exports starting 27 March to safeguard domestic needs.

This policy reflects growing global concerns over raw material supplies amid geopolitical tensions.