Plastic Prices Surge, Industries Urged Not to Rely on Single Raw Material Supplier and to Strengthen Stock
JAKARTA, KOMPAS.com – The surge in domestic plastic prices by up to 50–100 per cent serves as an early signal of serious global supply chain disruptions, urging industries not to rely on a single raw material supplier and to promptly strengthen stockpiling strategies to ensure production continuity.
Founder & Chairman of Supply Chain Indonesia (SCI), Setijadi, assesses that global supply chain disruptions have directly impacted the availability of non-energy industrial raw materials in Indonesia. The rise in plastic prices reflects disruptions in the supply of imported raw materials, which have long been the main input for various manufacturing sectors.
“This situation is not merely a price increase, but an early signal of a raw material stock crisis,” said Setijadi in an official statement on Friday (17/4/2026).
Disruptions are not limited to plastic but also affect industrial chemicals such as sulphur and acid, metal materials like aluminium, and critical materials like helium used in the electronics and high-tech industries. Many of these materials are difficult to substitute in the short term, thus directly affecting production processes.
Setijadi describes this condition as a multi-material shortage, namely simultaneous disruptions in various types of raw materials. The impact is not only on prices but also on the physical availability of materials, which could pressure factory utilisation and disrupt production continuity.
“In the short term, this condition can trigger a chain reaction in the form of increased lead times, higher production costs, and pressure on market product prices,” he stated.
Setijadi recommends that industries no longer rely on one or two main supplier countries but instead seek raw material sources from various regions such as South Asia, Africa, and Latin America, while still considering geopolitical risks and logistical readiness.
In addition, companies need to strengthen inventory strategies through selective buffering based on risk, by identifying critical raw materials that are difficult to substitute and ensuring their availability to maintain production continuity without excessively burdening inventory costs.
Industries are also encouraged to increase supply chain visibility from upstream to downstream through the utilisation of technologies such as digital supply chains, tracking systems, and predictive analytics so that potential disruptions can be detected earlier and decisions can be made more quickly.