Industry Minister: Plastic Price Increase Inevitable
The government is faced with a policy dilemma, and there is no truly comfortable option.
Industry Minister (Menperin) Agus Gumiwang Kartasasmita has spoken out regarding the rise in plastic prices that is now haunting business actors and the public as consumers. He acknowledged that there has been an increase in prices at the production level in line with the surge in global raw material costs due to the war in the Middle East. The escalation of the conflict, he said, is impacting the supply of naphtha as the main raw material for the petrochemical industry. Global distribution and production disruptions have ultimately triggered cost increases at the upstream level.
“Disruptions in the global supply chain are indeed putting pressure on the plastic production cost structure,” said Agus on Wednesday (8/4).
However, he assured that the government has undertaken efforts to secure supplies through various alternative channels.
He explained that the Ministry of Industry continues to strengthen coordination with manufacturing industry players to mitigate the impact of global supply chain disruptions. This step is taken to maintain national industry resilience so that it remains capable of meeting domestic and export needs.
“Synergy between the government and business actors is the key to ensuring the industry remains resilient amid global pressures,” Agus concluded.
The Ministry of Industry, together with upstream petrochemical industry players, has prepared several strategic measures. One of them is by seeking alternative naphtha supply sources outside the Middle East region to reduce dependence.
In addition, the industry is also optimising the use of LPG as a buffer raw material in the production process. The government is also encouraging the utilisation of high-quality recycled plastic as a substitute to maintain supply stability.
Regarding the issue of limited stock until May, Agus emphasised that the national packaging industry is still in an expansion phase. This is reflected in the March 2026 Industrial Confidence Index (IKI) data, which shows that the performance of that subsector remains strong.
“The public and industry players do not need to panic. Plastic products are assured to still be available in the market,” he stressed.
Perum Bulog has assured that the availability of rice packaging remains safe amid concerns over plastic raw material shortages due to global geopolitical dynamics.
The plastic industry in Tasikmalaya City is beginning to feel serious impacts from the heating up of the geopolitical conflict in the Middle East involving the United States, Israel, and Iran.
Plastic prices at the Traditional Market in Depok City have surged 100% due to the Middle East conflict. The rise in naphtha prices is impacting MSMEs and cooking oil prices.
Perum Bulog has assured that the availability of rice packaging remains safe amid concerns over plastic raw material shortages due to global geopolitical dynamics.
The surge in global plastic raw material prices triggered by economic uncertainty and the Middle East conflict is starting to be felt down to retail traders in Makassar City, South Sulawesi.
Plastic prices in Central Java have risen up to 100%. The Central Java Industry and Trade Office encourages business actors to switch to an environmentally friendly concept and carry out export market diversification.
The rise in plastic prices is making micro, small, and medium enterprises (MSMEs) struggle to maintain business operations.
The war between the United States-Israel and Iran is impacting the surge in prices of various types of plastic in Indonesia, including in Bangka Belitung Province (Babel).