Ministry of Industry Summons Plastic Entrepreneurs, Uncovers the Real Facts

Jakarta, CNBC Indonesia - Concerns over rising plastic prices are being felt by industry players, particularly in the food and beverage sector. However, the government assesses that the situation has not yet become a crisis, but remains at the anticipation stage.

These concerns relate to plastic raw material stocks estimated to last only a short term. This condition has triggered speculation in the market.

“The industry is worried that stocks will only suffice for 1 to 2 months, which is a point of attention,” said Acting Director General of Agro, Ministry of Industry, Putu Juli Ardika, in a discussion with the media on Tuesday (21/4/2026).

The Ministry of Industry gathered plastic business actors last week, with results showing that raw material availability is actually still safe. The discussion involved the entire plastic industry chain.

“In the meeting, all industry players stated that raw materials are available, so there is no debate regarding availability,” he explained.

The government is now focusing on maintaining price stability to prevent sharp increases. One option discussed is intervention in import cost components for raw materials.

“The important thing is availability first; for prices, solutions will be sought, including possible import duty policies,” said Putu.

Amid this situation, the Ministry of Industry is beginning to encourage packaging diversification as a mitigation step. One promoted option is the use of paper-based materials.

“We are promoting the use of paperboard, which is paper-based, because it is already widely used and quite competitive,” he revealed.

Currently, the portion of paper-based packaging already reaches nearly a third of total usage in the food industry. This figure is deemed still increasable.

“Now, paper packaging is around 28%, while plastic is still around 48%,” explained Putu.

Besides paper, other alternatives like glass packaging are also starting to be reconsidered. The government sees opportunities for increased usage in the coming years.

“Glass usage is currently still 2-3%, but if it can rise to 5%, that would already be very good for promoting the industry,” he stated.

However, he acknowledged that not all alternatives can immediately replace plastic, especially for products requiring resistance to liquids and oils.

“For this eco-friendly packaging, technological improvements are still needed, particularly to withstand water, oil, and humidity,” said Putu.