Plastic Raw Material Prices Become a Spectre for Industry, Industry Minister Responds Thus
Jakarta, CNBC Indonesia - Concerns among industrial players regarding the supply of raw materials are intensifying amid global energy price volatility that is pushing up industrial material costs. Several associations are even signalling potential production disruptions if the situation is not addressed promptly.
Industry Minister (Menperin) Agus Gumiwang Kartasasmita stressed that the main issue currently is not just availability, but also the price of raw materials that is burdening the industry.
“The keyword is pricing. The government will continue to ensure the availability of raw materials, including plastics,” he said in Jakarta on Wednesday (15/4/2026).
The government is beginning to focus attention on price stability to avoid pressuring business actors, particularly in the small industry sector that is most vulnerable to production cost fluctuations.
“I will approach producers, especially to ensure that small industries can obtain prices that are not burdensome,” he asserted.
This step is important because small industrial players are seen to have limited room to absorb cost increases. Without intervention, price pressures are feared to impact business sustainability.
“Producers are expected to reduce margins, so that prices for small industries do not hinder their business development,” he continued.
In addition to prices, the government is also preparing alternative strategies to maintain supply availability amid global pressures. “On the quantity side, the government will continue to seek raw material substitutes,” he added.
Amid this situation, coordination with industrial players is crucial to ensure that policies taken remain effective and on target. “We will continue to coordinate with suppliers to provide room for adjustments for small industries and other sectors,” he said.
The pressure on raw materials is said not to be experienced only by Indonesia. Global conditions are also narrowing the room for manoeuvre for industries in obtaining supplies. “It’s not just Indonesia facing raw material shortages; this is happening globally,” he said.
Previously, businesspeople revealed the impact of the war in the Middle East, which is causing many companies to face heavy challenges, especially those relying on imported raw materials, due to limited imported raw materials.
Chairman of the Manpower Sector of the Indonesian Employers Association (Apindo) Bob Azam said that the limited imported raw materials could cause production to stop. In fact, they are pessimistic about whether production can continue in the coming months.
“The situation we are facing now is not easy amid economic weakening, and there is also the threat of war with Iran, supply chains are also starting to be limited,” Bob said in his presentation during a hearing with Commission IX of the House of Representatives (DPR RI) regarding the Manpower Bill (RUU Ketenagakerjaan), on Tuesday (14/4/2026).