Plastic Prices Rise, Purbaya Reveals the Culprit

Finance Minister Purbaya Yudhi Sadewa has highlighted the issue of rising plastic prices. He revealed that this is triggered by global increases in raw material prices such as naphtha and petroleum, which are the main components of the petrochemical industry.

“It’s like this, why is it rising, right? Because the raw materials are also rising, right? If I’m not mistaken, it’s from naphtha and petroleum,” he stated in Jakarta on Wednesday, 8 April 2026.

This situation has caused production costs to increase and impacts the prices of derivative products domestically. He emphasised that price movements in this sector are highly dependent on international market dynamics.

He explained that this mechanism is automatic, where rises in raw material prices directly affect the prices of end products. “When it rises, it rises too. But if it falls later, it will fall too,” he added.

Purbaya also responded to reports of business actors requesting fiscal facilitations, including exemptions from import duties for the plastic industry. However, he stressed that no direct discussions on this have reached him.

“It’s said that businesspeople are asking for facilitations for the plastic industry, exemption from import duties?” he said. “Asking whom? Not asking me,” he continued.

Furthermore, Purbaya noted that there has been no formal communication from the Ministry of Industry regarding the issue to date. The government will still examine the cost structure and supply chain before considering policy steps.

He also mentioned that similar pressures are occurring in other sectors like nickel, which are also affected by global raw material price increases such as sulphur. Nevertheless, he emphasised that every policy proposal, including incentives or adjustments to export duties, needs to be thoroughly reviewed to avoid market distortions.

Purbaya stressed that the government will objectively assess the situation before making decisions, including price dynamics when conditions are favourable or pressuring business actors.