Naphtha Shortage: Industry Minister Urges Quick Action to Hunt for New Import Sources

The supply of naphtha, a key raw material for the petrochemical industry, is under scrutiny amid high import dependency. Global distribution disruptions are exacerbating an already tight situation.

Industry Minister Agus Gumiwang Kartasasmita has signalled that the government is exploring new supply sources beyond traditional suppliers.

“Just watch who the naphtha producers are; that’s where our potential suppliers lie,” he said at JiExpo Kemayoran on Wednesday (15/4/2026).

This step is part of a diversification strategy to prevent the industry from relying too heavily on a single region. So far, some alternative supplies are visible, though not yet significant in meeting national needs.

“A small portion has already been obtained, for example from Malaysia,” he revealed.

However, the government remains cautious about disclosing details of ongoing collaborations. The exploration process is still underway.

“There are discussions, but they are still confidential,” he continued.

This situation indicates that competition for raw materials is intensifying globally. Countries and industry players are racing to secure supplies.

“All countries are facing scarcity, leading to competition for supplies,” he explained.

In this context, businesses are urged to be more proactive in seeking supply opportunities, including from international markets.

“If there’s availability abroad, just take it,” he emphasised.

The government views flexibility in raw material procurement as key to keeping the industry running amid global uncertainties.

“Companies must be able to quickly formulate raw material procurement strategies,” he concluded.