Rising Raw Material Prices and Weakening Rupiah Strangle Fibre Optic Business

Rising Raw Material Prices and Weakening Rupiah Strangle Fibre Optic Business

Jakarta, CNBC Indonesia - The fibre optic business is also feeling the impact of Middle East tensions, with the price of fibre optic raw materials, namely HDPE (High-Density Polyethylene) made from crude oil, rising.

The Association of Telecommunications Network Providers (Apjatel) has recorded a surge in global crude oil prices, causing the price of raw materials and fibre optic cable materials to rise by 17%.

In addition, Vice Chairman II of the Association of Telecommunications Network Providers (Apjatel), Nia Kurniasingsih, said that the US vs war is also disrupting logistics and supply chains, as well as the weakening of the rupiah, given Indonesia’s continued dependence on imports of fibre optic raw materials, which still reaches 70%.

This condition results in disruptions to raw material supplies that hinder telecommunications network projects and inflate import costs for materials, burdening operations.

Facing this situation, the telecommunications industry is encouraged to increase efficiency in planning and network optimisation. So, what is the impact of the war on the telecommunications network business? For more details, watch the dialogue between Shafinaz Nachiar and Vice Chairman II of the Association of Telecommunications Network Providers (Apjatel), Nia Kurniasih, on Profit, CNBC Indonesia (Friday, 17/04/2026).