Plastic Prices Surge 50 Percent, Market Traders' Profits Dwindle

JAKARTA, KOMPAS.com - Plastic prices in markets have surged sharply since the conflict in the Middle East intensified. Traders are coming under pressure as packaging costs rise significantly.

The Central Board of the Indonesian Market Traders Association (IKAPPI) has recorded a 50 percent increase in plastic prices from normal levels.

General Secretary of the DPP IKAPPI, Reynaldi Sarijowan, stated that the rise has occurred gradually since 28 February 2026.

“Far before entering Ramadan, it was still 10,000. Then it rose gradually over a week, another week, another week, up Rp 500, up Rp 700, various increases until today, the peak of which we project at 50 percent,” said Reynaldi when contacted by Kompas.com on Monday (6/4/2026).

“Initially it was Rp 10,000, today the cost burden borne by traders has become Rp 15,000,” he added.

Reports from traders indicate even higher spikes for certain types of plastic. HD plastic, PE, OPP, and even plastic twine now reach Rp 52,000 per kilogram.

These prices have risen from the normal range of Rp 23,000 to Rp 24,000 per kilogram. The increase approaches 100 percent.

“Usually it’s around Rp 23,000-Rp 24,000,” he explained.

Traders have not yet raised selling prices for goods. They are choosing to squeeze their profit margins to preserve purchasing power.

“For now, the strategy is to thin the profits. The profits might be small, because of that burden, the plastic,” he said.

Supply disruptions are triggered by the closure of the Strait of Hormuz. This route is the main path for plastic raw materials.

“If we look at plastic raw materials using fuel oil, of course this will affect it greatly, with the conflict occurring in the Middle East,” he stated.

The Aromatic Olefin Plastic Industry Association (Inaplas) stated that naphtha supplies are disrupted. Around 70 percent of these raw materials come from West Asia.

“Now, due to the war, the first thing is the Strait of Hormuz is closed, so raw materials in the form of naphtha, 70 percent of which come from the Middle East, cannot be delivered to the petrochemical industries,” said Inaplas Secretary General Fajar Budiono when contacted by Kompas.com by phone on Thursday (2/4/2026).