Industry Minister Ensures Resolution to Plastic Supply Disruptions
Industry Minister Agus Gumiwang Kartasasmita has assured that the government is striving to maintain plastic supply stability to prevent it from burdening small and medium-sized industries (IKM) amid threats of global raw material shortages.
The Minister stated that the main issue with raw material availability currently is not only related to supply but also to prices. Therefore, the government will take steps to reduce the cost burden on IKM players.
Agus Gumiwang emphasised that the government will ensure plastic availability while approaching producers to adjust profit margins, particularly to meet the needs of small industries.
“Regarding plastic, I will approach the producers, especially to serve small industries, so that producers can reduce their margins. Then, regarding the pricing applied to small industries, it will not burden the development of small industries in Indonesia,” said Agus Gumiwang in Jakarta on Wednesday, 15 April 2026, as quoted from Antara.
In addition to maintaining prices, 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,” said Agus Gumiwang.
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.
Agus Gumiwang added that potential partner countries can be identified from global naphtha producers that have the capacity to supply Indonesia’s needs.
The Minister stressed that raw material shortages, such as naphtha, are not only experienced by Indonesia but also a global issue that triggers competition among countries to secure supplies.
“We must also understand that it is not only Indonesia facing scarcity of plastic and naphtha, but the whole world. So there is a specific competition for countries and businesses to obtain that plastic supply,” said Agus Gumiwang.
Agus Gumiwang 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.
Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja revealed that some industry players have obtained supplies from Malaysia.
“From our members that I heard, they have obtained a small portion from Petronas, Malaysia,” he said.