Industry Minister Ensures Plastic Supply Disruptions Do Not Burden SMEs
Jakarta (ANTARA) - Industry Minister (Menperin) Agus Gumiwang Kartasasmita has assured that the government is striving to maintain the stability of plastic supplies to prevent burdening small and medium-sized industries (IKM) amid threats of global raw material shortages.
The Minister, speaking in Jakarta on Wednesday, stated that the main issue with raw material availability currently is not only supply but also pricing. Therefore, the government will take steps to reduce the cost burden on IKM actors.
He emphasised that the government will ensure the availability of plastic while approaching producers to adjust profit margins, particularly for supplying the needs of small industries.
“Regarding plastic, I will approach the producers, especially to serve small industries, so that they can reduce their margins. Thus, the pricing applied to small industries will not burden the development of small industries in Indonesia,” said Agus.
In addition to keeping prices stable, the government is also continuously seeking alternative supply sources to ensure the sustainability of national industrial production.
“So, regarding supply in terms of quantity, the government will continuously seek substitutes, but we will coordinate with plastic suppliers, especially for small industries and other industries, if there is still room to reduce margins,” he said.
Regarding plastic raw materials, naphtha, which is still largely dependent on imports from the Middle East, he stated that the government is exploring cooperation opportunities with other countries as alternative supply sources.
He added that potential partner countries can be identified from global naphtha producers that have the capacity to meet Indonesia’s needs.
The Minister stressed that shortages of raw materials like naphtha are not only experienced by Indonesia but are a global issue that triggers competition among countries to secure supplies.
“We must also understand that it’s not just Indonesia facing scarcity of plastic and naphtha, but the whole world. That creates its own competition for countries and businesses to obtain those plastic supplies,” said Agus.
He also encouraged industry players to be more adaptive in formulating raw material procurement strategies, including utilising available supply opportunities in the international market.
“So, companies must be able to formulate work plans regarding plastic. If there is plastic available for sale abroad, just take it,” he said.
On the other hand, Jemmy Kartiwa Sastraatmaja, Chairman of the Indonesian Textile Association (API), revealed that some industry players have obtained supplies from Malaysia.
“From our members that I heard, they have already obtained a small portion from Petronas in Malaysia,” he said.