Iran Conflict Disrupts Global Supply, Plastic Prices Rise, Government Seeks Alternative Imports
Several countries have reported securing plastic raw material naphtha. This includes South Korea, which has imposed an export ban on naphtha effective from Friday (27/3) as part of efforts to secure domestic supplies amid concerns over potential import disruptions.
Minister of Trade Budi Santoso assured that the government is seeking alternative sources for plastic raw materials to anticipate disruptions in imports from Middle Eastern countries.
Responding to journalists’ questions after a press conference at the Presidential Staff Office in Jakarta on Wednesday (1/4/2026), Minister Budi Santoso stated that the situation in the Middle East has resulted in impacts related to naphtha import activities used for plastic production.
“Naphtha is imported from the Middle East. So we are affected by the raw materials we import from the Middle East. What are we doing? We are now looking for alternative replacements or alternatives from other countries,” said the Minister of Trade.
The Minister of Trade himself refers to naphtha as a hydrocarbon compound derived from petroleum that serves as the main raw material for producing plastic resin, rubber, and solvents.
He mentioned that approaches have already been made to several countries, including India, as well as several parties in Africa and the Americas.
“Indeed, this takes time because suddenly shifting from the Middle East to other countries. So we hope this process can run well, so that prices can return to normal,” he added.
The Ministry of Trade itself has held discussions with associations and industry players to find other alternatives besides the Middle East.
The Ministry of Trade is also continuously communicating with Indonesian government representatives abroad to help find new suppliers to ensure that plastic raw material supplies remain smooth.
He highlighted that similar conditions are not only occurring in Indonesia but also in several other countries, including Singapore, China, South Korea, Thailand, and Taiwan.
“But for raw materials, we continue to do so that domestic production returns to normal and plastic supplies are well maintained,” he explained.