Plastic Prices Rise, Government Seeks New Supplies

Rising plastic prices over the past few days have begun to be complained about by business actors and the public. The government assesses that this surge is a consequence of global supply disruptions related to conflicts in raw material-producing regions.

Trade Minister Budi Santoso explained that one of the main components of plastic, namely naphtha, still depends on imports from the Middle East. This dependence makes the supply chain vulnerable to disruptions when geopolitical situations heat up.

“There have been many complaints from the public about rising plastic prices in the past few days. This is part of the impact of the war. Our plastic raw materials, one of which is naphtha, are imported from the Middle East,” he said to reporters in Jakarta on Wednesday (1/4).

To dampen the impact, the government is beginning to divert supply sources to other countries. Several regions such as Africa, India, and America are now being explored as alternative suppliers of raw materials.

“We are now seeking alternative replacements or alternatives from other countries. And we have already done so, for example, in Africa, India, and America,” he continued.

However, this supply chain shift cannot be done instantly. Budi acknowledged that the adaptation process requires time, especially in building relationships with new suppliers and ensuring smooth distribution.

“This takes time, because suddenly switching from the Middle East to another country. So we hope this process can run well, so that prices can return to normal,” he said.

The government is also continuing to coordinate with industry associations and business actors to accelerate the entry of new supplies. Indonesian representatives abroad have been tasked with finding alternative sources that can immediately meet domestic needs.

This phenomenon, according to Budi, is not only occurring in Indonesia. Several countries such as Singapore, China, Korea, Taiwan, and Thailand are also experiencing similar pressures on the plastic raw materials sector.