Plastic Prices Expected to Return to Normal after Strait of Hormuz Reopens
The reopening of the Strait of Hormuz is expected to restore normal logistics supplies, including plastic prices. Industry Minister Agus Gumiwang Kartasasmita hopes that an agreement between the United States and Iran can be reached.
Agus stated that if global logistics supplies normalise following the US-Iran agreement, Indonesia will be able to meet its plastic raw material needs, ensuring that production continues uninterrupted.
“So that the plastic needs of our business actors can be fulfilled,” he said.
Nevertheless, disruptions in plastic raw material supplies can still be anticipated by substituting materials, according to him. Agus said he has discussed this issue with business actors.
“I think it’s reasonable if there’s a slight supply problem. There are substitutes,” he said.
Business actors have complained about the rise in plastic prices. This is because supplies of plastic raw materials shipped from Middle Eastern countries are hampered as ships carrying logistics cannot pass through the Strait of Hormuz, which is controlled by Iran.
Iran announced on Thursday two alternative routes for ships crossing the Strait of Hormuz, citing the risk of sea mines in some parts of the vital waterway.
The Islamic Revolutionary Guard Corps (IRGC) advised ships to take alternative routes for maritime safety.
Geopolitical tensions in the Middle East have heated up again after the Strait of Hormuz was closed once more, just hours after it had been promised to reopen.
Lotte Chemical Indonesia (LCI) faced supply disruptions for raw materials due to the previous closure of the Strait of Hormuz, a consequence of the conflict between the United States (US) and Iran.
Iran closed the Strait of Hormuz again amid a ceasefire with the United States, following Israel’s airstrikes on Lebanon on Wednesday (8/4) local time.
Thai Foreign Minister confirmed that three sailors from the cargo ship Mayuree Naree died after a missile attack in the Strait of Hormuz. Their bodies were found on the Iranian coast.
US President Donald Trump is considering toll tariff cooperation on the Strait of Hormuz with Iran. Talks are scheduled to take place in Islamabad, Pakistan.
The Strait of Hormuz has reopened following a ceasefire agreement between the United States and Iran. Indonesia’s Foreign Ministry stated the importance of freedom of navigation in accordance with international law.
US President Donald Trump said that all civilisation would perish tonight, a threat against Iran ahead of the deadline for demands to reopen the Strait of Hormuz.
Iran allows transit ships not affiliated with the United States (US) or Israel to cross the Strait of Hormuz, which is seen as an opportunity for Indonesia according to Indef.
A team of military planners from the UK is reportedly working with the US military to devise steps to reopen the Strait of Hormuz.