Plastic Prices Surge Up to 80%, Industry Enters 'Price Adjustment' Phase

JAKARTA - Plastic prices have surged sharply in a short time. The Indonesian Association of Olefin, Aromatic, and Plastic Industries (Inaplas) states that the market has entered a new phase, namely “price adjustment”.

Inaplas Secretary General Fajar Budiono said the surge was triggered by global supply disruptions. The main pressure comes from conflicts in the Middle East, particularly in the Strait of Hormuz shipping lane.

“Plastic raw material prices, which were previously around US$1,000 per metric tonne, have now risen to US$1,800. That means an increase of almost 80%,” Fajar said in a written statement on Wednesday (15/4/2026).

Fajar noted that the impact is already being felt by the public. Food vendors and small and medium enterprises (SMEs) are starting to complain about the surge in packaging prices.

The increase was temporarily held back during Ramadan and Eid al-Fitr. The industry focused on maintaining distribution at that time, so the global price rise was not yet passed on to the domestic market.

“For nearly 20 days, we focused on Eid distribution. Once the market returned to normal, prices immediately surged and business actors were shocked,” he explained.

The problem is not just with prices. Supply is also disrupted. Around 70 per cent of national plastic raw materials still rely on imports from the Middle East.

Distribution disruptions have caused supply to be delayed for nearly a month. The industry is now relying on stocks while seeking alternative sources.

One option comes from the United States. This choice brings consequences of longer delivery times and higher logistics costs.

“Now the important thing is to have supply first. Prices will adjust later,” Fajar said.

Inaplas assesses that the pressure will not ease in the near term. Prices still have the potential to fluctuate before reaching a new equilibrium.

“This is not just a price increase, but we have already entered the price adjustment phase. Sooner or later, the market will adjust to a new level,” he concluded.