Soaring Plastic Prices: Will the Government Provide Incentives?

Jakarta, CNBC Indonesia - Global crude oil prices soaring due to the war in the Middle East are also impacting the prices of derivative products, which are becoming increasingly expensive, such as plastic raw materials, namely naphtha. The rising cost of naphtha is causing plastic prices to increase in the market. When plastic prices surge, food and other packaged goods automatically rise as well. In Indonesia, products with plastic packaging are commonly found in public circulation. This situation is naturally suppressing consumption and people’s purchasing power. As a result, plastic factories in the country are also feeling the pinch. They have to swallow a bitter pill because their margins are potentially becoming even narrower. When the industrial margin is squeezed, the government has revealed that there are no plans for incentives for the plastic industry. This was stated by Coordinating Minister for the Economy Airlangga Hartarto. “Not yet. Usually, industries follow the cycles, just go along with it,” Airlangga told the media at his office in Jakarta on Monday (13/4/2026). Meanwhile, Trade Minister Budi Santoso explained the root of the current sky-high plastic prices. “So, plastic, we import the raw materials for plastic pellets, which is naphtha, right? That’s from the Middle East all this time. Because of the war’s impact, it’s disrupted, so naturally from there,” said Budi Santoso to the media at the Coordinating Ministry for the Economy office in Jakarta on Monday (13/4/2026). Currently, Budi said the government is seeking alternative raw materials from other countries such as India, the United States, and Africa. “We have indeed obtained some, but the quantity or timing, it will also take time (to prepare),” he said.