Industry Minister Emphasises Assurance of Plastic Stock Availability from Domestic Industry

Jakarta (ANTARA) - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita emphasised that the domestic upstream and downstream plastic industry has guaranteed the availability of plastic stocks for domestic needs, amid disruptions to the raw material supply chain. He stated that from a meeting held in Jakarta on Thursday between his office and the plastic industry from upstream to downstream, optimism was revealed regarding the availability of plastic stocks in the country. “We have received assurances from the industry that plastic stocks should not pose a problem. I underline the word ‘should’, because the government continues to monitor global developments carefully that impact production and stocks in this subsector,” Agus said in a confirmed statement. Furthermore, his office continues to monitor developments in global geopolitical dynamics, including the situation in the Strait of Hormuz, which has the potential to affect the supply chain of petrochemical raw materials and the national plastic industry subsector. The Ministry of Industry also understands that geopolitical turmoil in the Strait of Hormuz has caused distortions in the pricing structure of plastic products domestically. Price adjustments may occur due to increases in logistics and port freight costs, the imposition of premium surcharges, and disruptions to delivery times for raw materials from abroad. “Delivery times that previously averaged around 15 days can now increase to up to 50 days. This condition certainly impacts increased production cost burdens,” the Minister revealed. Furthermore, the Minister emphasised that the current global situation serves as an important lesson learned to further strengthen the self-reliance of the national petrochemical industry, particularly from the aspect of domestic raw material provision.