Industry Minister Pledges to Maintain Plastic Supply and Prices for Small and Medium Industries

Industry Minister Agus Gumiwang Kartasasmita has assured that the government will strive to maintain the stability of plastic supplies to avoid burdening small and medium-sized industries (IKM) amid threats of global raw material shortages. He 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 cost burdens for IKM actors. Agus emphasised that the government will ensure plastic availability while approaching producers to adjust profit margins, particularly for supplying small industries’ needs. “I will approach the producers, especially to serve small industries, so they can reduce margins. Thus, regarding the pricing imposed on small industries, it will not burden the path or development of small industries in Indonesia,” Agus said in Jakarta on Wednesday, 15 April 2026. In addition to maintaining prices, the government is continuously seeking alternative supply sources to ensure the sustainability of national industrial production. “So, regarding supply related to quantity, the government will continuously seek substitutions, but we will coordinate with plastic suppliers, especially for small industries and other industries; if possible, there is still space 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. Agus added that potential partner countries can be seen from global naphtha producers that have the capacity to supply Indonesia’s needs. He emphasised that shortages of raw materials like naphtha are not only experienced by Indonesia but are also a global issue that triggers competition among countries to secure supplies. “We must also understand that it’s not only Indonesia facing scarcity of plastic and naphtha, but the whole world. That creates its own competition for countries and businesses to obtain that plastic supply,” Agus said. He also encouraged industry players to be more adaptive in formulating raw material procurement strategies, including utilising available supply opportunities in the international market.