Ministry of Industry Boosts Plastic Recycling Amid Disrupted Raw Material Supplies

The government is encouraging the utilisation of recycled plastic as the primary strategy to maintain raw material availability. This step is being taken amid global naphtha supply disruptions due to conflicts in the Middle East.

Industry Minister Agus Gumiwang Kartasasmita stated that the use of high-quality recycled plastic is being continuously increased to support industrial needs.

“The government is promoting the increased use of recycled plastic or high-quality recycled plastic as a substitute supply to maintain stock stability in the market,” he explained.

“The escalation of conflict in the Middle East region has triggered supply corrections in industrial sectors that rely on naphtha as the main raw material. Given that plastic is a derivative product of the petrochemical process based on petroleum, disruptions in global distribution and production routes are indeed exerting pressure on upstream cost structures,” he said.

The government is then preparing several measures to keep production running. In addition to promoting recycling, the industry is also seeking new supply sources.

“The industry is actively exploring naphtha supplies from countries outside the Middle East region to reduce regional dependence,” Agus said.

The optimisation of the use of liquefied petroleum gas (LPG) is also being carried out as a supporting raw material.

“The use of LPG is being optimised as a buffer raw material in the production process to cover the gap in naphtha supply shortages,” he added.

“Efforts to secure supplies continue to run in parallel,” he emphasised.