Plastic Supply Disrupted, Industry Minister: Reopening of Strait of Hormuz to Normalise Logistics

JAKARTA - Industry Minister Agus Gumiwang Kartasasmita stated that the disruption in plastic supply is due to global turmoil. The conflict triggering the rise in world oil prices is also pressuring the availability of raw materials.

Agus assessed that this condition is still within reasonable limits. The government has prepared anticipatory measures through alternative raw materials.

“Regarding plastic, I think it’s reasonable if there are slight supply issues,” Agus said in Jakarta on Thursday (9/4/2026).

“But there are substitutes that we have already discussed with business actors,” he added.

Agus hopes the geopolitical situation will improve soon. The reopening of the Strait of Hormuz is considered crucial to restoring the global supply chain.

“If we look at it, hopefully the agreement between America and Iran regarding the reopening of the Strait of Hormuz can normalise the logistics ecosystem, so that the plastic needs for our business actors can be fulfilled,” he said.

The supply disruption arose when world oil prices surged due to the Iran conflict. This condition directly impacts the price of plastic raw materials.

Several plastic-based products are beginning to experience price increases. Beverage bottles, disposable cutlery, and rubbish bags are also affected. Small business actors at the retail level are starting to impose additional charges for plastic bags.

The General Chairman of the Bottled Drinking Water Companies Association, Firman Sukirman, stated that producers do not have many options. The surge in plastic prices is pressuring production costs.

The supply of raw materials from West Asia has stopped due to the closure of the Strait of Hormuz. Plastic has become a scarce and expensive commodity.

“It’s not this week, last week there were already some increases,” said Firman when met at the Parliament Complex, Senayan, Jakarta, on Tuesday (7/4/2026).