Limited Alternatives: Experts Predict Plastic Prices to Rise for Up to Two Years
Jakarta – Plastic price increases are expected to continue in the near future. Observers assess that the scarcity of alternative materials makes it difficult for the industry to absorb production cost surges amid global energy price pressures.
Plastic is an essential material used for packaging across various sectors, from construction and automotive to healthcare. This high dependency makes transitioning to alternatives like paper or glass challenging, as it demands substantial costs and comprehensive changes to production processes.
Professor of Economics at NYU Stern School of Business, Joseph Foudy, stated that short-term alternatives to plastic remain very limited. This situation pushes industry players to seek other ways to cut costs, such as adjusting product designs.
“There are not many alternatives to plastic,” said Foudy, quoted from CNN International, Thursday, 9 April 2026.
Meanwhile, Professor from Syracuse University, Patrick Penfield, noted that companies tend to use thinner plastic or cheaper materials. Products that are predominantly plastic, such as rubbish bags, are expected to see sharper price hikes compared to more complex products like vehicles, where plastic is just one component.
Foudy warned that the impact of rising global oil prices could last a long time. If oil prices remain high for three to four months, consumers could face higher prices for one to two years ahead.
“If energy prices stay high for several months, consumers could pay more for quite a long period,” he explained.
Citing the BBC, the global benchmark Brent crude oil was recorded to have fallen about 13 percent to US$94.80, equivalent to Rp1,611,600 per barrel (exchange rate Rp17,000) on Wednesday, 8 April 2026. Meanwhile, US-traded oil prices plunged more than 15 percent to US$95.75, or about Rp1,627,750 per barrel.
Furthermore, CEO of Plastics Exchange, Michael Greenberg, assessed that the recovery of the plastic supply chain due to the closure of the Strait of Hormuz will not happen quickly. Even if the US-Iran war eases in the near term.