Plastic Prices Surge up to 80 Percent, Government Prepares Mitigation

Minister of Cooperatives and SMEs Maman Abdurrahman stated that the government is currently discussing mitigation steps in response to the rise in plastic prices, triggered by a surge in raw material costs due to global supply uncertainties, including the impact of the conflict in the Middle East. He emphasised that this situation has affected SMEs, prompting the government to prepare measures to safeguard the continuity of small and medium-sized businesses. When met at the Ministry of Cooperatives and SMEs office in Jakarta on Monday (6/4/2026), Maman acknowledged that several SMEs have voiced complaints regarding the increase in plastic prices for product packaging. “Aspirations have already come in. The need for plastic for product wrapping has indeed risen. But we will prepare the mitigation,” said Maman. He mentioned that the Ministry of Cooperatives and SMEs will coordinate with the Ministry of Trade to determine the appropriate steps in addressing the impact of the rise in plastic raw materials. Regarding the details of the steps to be taken, Maman assessed that it is still too early to explain before the technical discussions are completed. Domestic plastic prices are reported to have surged 30–80 percent following the heating up of the conflict in the Middle East involving the United States (US)-Israel and Iran. This turmoil disrupts the supply of main plastic raw materials and pushes up prices in the domestic market. Disruptions in naphtha distribution, a derivative of petroleum, as well as a surge in global oil prices, are cited as the main triggers for this increase. This situation raises concerns for SMEs that depend on plastic as a product packaging material. Commission VI of the Indonesian House of Representatives (DPR RI), which oversees, among others, the trade, cooperatives, and SMEs sectors, has urged the government to immediately carry out market interventions to protect SMEs from the impact of rising plastic prices. Member of Commission VI of the DPR RI Firnando Ganinduto requested that the Ministry of Trade take strategic steps to control prices and ensure the availability of raw materials domestically. “The government needs to immediately stabilise through supervision of raw material distribution and strengthening the national petrochemical industry so that dependence on global supplies can be reduced,” said Firnando in a press statement on Monday.