Prepare for 20% Pesticide Price Increase; Beware of Counterfeit Products Flooding Market
The Indonesian Pesticide Producers Association (APROPI) has signalled price increases for pesticide products of approximately 20% to 30% amidst rising production costs triggered by escalating geopolitical tensions in the Middle East. Simultaneously, the industry has cautioned about the potential proliferation of counterfeit pesticides as official product prices rise in the market.
APROPI Chairman Yanurius Nunuhitu stated that elevated prices typically trigger the emergence of counterfeit pesticide products and those failing to meet quality standards.
“Generally, in conditions of high prices, there will be many counterfeit products and substandard products. We hope the government will protect farmers by monitoring the quality of pesticides in circulation,” Yanurius told CNBC Indonesia on Thursday, 12 March 2026.
He explained that pesticide price increases are difficult to avoid because the majority of the industry’s raw materials remain dependent on imports and are highly sensitive to global oil price movements.
“Price increases cannot be avoided because our pesticide active ingredients are imported from China, and almost all are sensitive to oil prices. Active ingredient prices have risen since the war began,” he said.
Additionally, pesticide formulations employ oil-based solvents, the prices of which have now surged sharply.
“Pesticide formulations use oil-based solvents. Solvent prices have risen nearly 60% or more,” he noted.
Cost pressures also emanate from the plastic packaging sector used for pesticide products. According to Yanurius, nearly all pesticide formulations utilise plastic packaging, so price increases in this material further inflate production costs.
“Since Chandra Asri announced force majeure, plastic packaging prices immediately rose. Almost 99% of pesticide formulations are packaged in plastic containers,” he explained.
Yanurius, in APROPI meeting minutes received by CNBC Indonesia, also highlighted that beyond pressure from shortages of active ingredients and supporting materials for pesticide formulation, weakening rupiah exchange rates further exacerbate domestic pesticide production costs.
“The current geopolitical situation has resulted in shortages of active ingredients and supporting materials for pesticide formulation, as well as rupiah depreciation,” stated the APROPI member meeting minutes from Monday, 9 March 2026, held via Zoom.
During that meeting, APROPI members agreed to raise pesticide product selling prices by approximately 20% to 30% across all products, including those previously classified as slow-moving items. Producers also decided to shorten payment periods and implement cash payment schemes.
Furthermore, Yanurius added that increased pesticide prices will ultimately impact farmer production costs, necessitating mitigation measures from the government.
“Farmer production costs will rise, and the government needs to implement mitigation measures,” he concluded.