Raw Material Prices Surge 100%, Layoff Threats Loom Over Diaper Industry

JAKARTA, KOMPAS.com - A surge in raw material prices of up to 100% is putting the national disposable diaper industry under heavy pressure. If supplies do not stabilise soon, business operators warn that the risk of production halts and mass layoffs is becoming increasingly real. The Indonesian Pulp and Paper Association (APKI) has noted that in recent times, industry players have reported rapid price increases in raw materials, changing even within hours. At the same time, some suppliers are facing availability issues with raw materials, adding further pressure to production processes and business planning. The impact is directly felt on petrochemical-based raw materials such as naphtha and polypropylene, which are key components in diaper production. In several cases, raw material price increases have been reported to reach 90% to 100%, exerting significant pressure on the industry’s cost structure. Overall, this cost surge has driven product price increases in the range of 20% to 30%, with potential for further rises amid supply uncertainties and extremely high price volatility. APKI assesses that this situation can no longer be viewed as normal fluctuations but requires serious attention and swift responses from all stakeholders. “The very rapid changes in raw material prices make production cost calculations unstable. The industry needs to make realistic and measured adjustments to avoid deeper pressures,” said Director of the APKI Diaper Committee, Oto Gunasis, in a press statement on Monday (20/4/2026). Several companies are said to have taken adjustment measures, including gradual product price increases and evaluations of promotional programmes, to maintain operational continuity. However, APKI believes that partial steps will not suffice without stronger coordination at the industry level. “The overall raw material price increases have pressured the entire industry value chain, from raw material producers to end-product manufacturers. In this condition, cost pressures could drive adjustments to diaper selling prices in the market, which ultimately may impact consumer purchasing power,” added Oto. APKI encourages companies, particularly at the strategic decision-making level, to immediately conduct comprehensive evaluations of cost structures, operational efficiency, and pricing strategies. Appropriate, proportional adjustments based on thorough calculations are deemed essential for the industry to survive amid high cost pressures, while ensuring product availability for the public.