Plastic Industry Diversifies Raw Material Sources to Meet Needs

Jakarta (ANTARA) - The Indonesian Plastic, Olefin, and Aromatic Industry Association (Inaplas) is striving to diversify sources of plastic raw materials, such as naphtha, to maintain production sustainability amid global pressures. In a statement confirmed in Jakarta on Monday, Inaplas Secretary General Fajar Budiono revealed that business players are continuously monitoring market directions, particularly regarding the supply of primary raw materials. According to him, the sector’s raw material structure, which still depends heavily on imports, increases vulnerability to external fluctuations. “For naphtha, the annual need is 3 million tonnes and 100% imported. For plastic raw materials such as PE (Polyethylene), PP (Polypropylene), PET (Polyethylene Terephthalate), PS (Polystyrene), and PVC (Polyvinyl Chloride) and others, around 8 million tonnes, with 50% still imported,” he said. “Zero import duty on LPG as an alternative raw material, gas supply,” Fajar stated. This diversification step is considered important to maintain supply stability amid rising global uncertainties. Moreover, the availability of energy is even said to be more urgent than fiscal policy relaxations. On the other hand, the uncertain global situation is also driving many countries to tighten supply safeguards. According to him, the surge in demand in several regions signals growing concerns about raw material availability in the international market.