Industry Minister Responds to Plastic Entrepreneurs' Concerns Over Difficult Raw Materials

Jakarta, CNBC Indonesia - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita has spoken out regarding the increase in plastic raw material prices, which is causing concern among industry players and prompting them to consider raising product prices.

Industry actors and entrepreneurs have asked the government to find alternatives to mitigate the impact of the Middle East conflict.

Agus stated that his side has already sought alternatives or substitutes and has discussed them with business actors.

“Regarding plastic, I think it’s reasonable if there is a slight supply issue, because of the conflict in the Middle East, the distribution of raw materials is disrupted. But there are substitutes that we have indeed discussed with the business actors,” said Agus when met by reporters in Jakarta on Thursday (9/4/2026).

He also hopes that with the news of a temporary ceasefire between Iran and the United States (US), the supply of plastic raw materials can return to normal.

“If we look at it, hopefully what becomes the agreement between America and Iran related to the opening of the Strait of Hormuz can return to normalising the ecosystem and logistics, so that the plastic needs for our business actors can be fulfilled,” he explained.

Previously, the General Secretary of the Indonesian Olefin, Aromatic, and Plastic Industry Association (Inaplas), Fajar Budiono, revealed that the current market conditions are still very dynamic and difficult to predict amid the escalation of tensions in the Middle East.

Amid this situation, industry players hope the government can maintain the stability of raw material supplies so that production activities are not disrupted. One of the main concerns is the smooth distribution of naphtha, which is the primary need for this sector.

“We hope the naphtha supply runs smoothly,” said Fajar to CNBC Indonesia on Monday (30/3/2026).

In addition, business actors are also starting to look at other raw material alternatives such as LPG to maintain production continuity. However, this effort is deemed to require policy support to be more competitive.

Compared to fiscal policies like relaxations, gas availability is considered more crucial to maintain efficiency and competitiveness of the petrochemical industry amid global pressures.

“Zero percent import duty on LPG as an alternative raw material. Gas supply,” said Fajar.