Supply Chain Disrupted by War, Plastic Packaging Prices Surge

JAKARTA, KOMPAS.com — Prices of plastic products and packaging are rising ahead of Eid al-Fitr. This increase is occurring alongside global supply chain disruptions.

The conflict in the Middle East is triggering distribution obstacles for petrochemical raw materials.

General Secretary of Inaplas Fajar Budiono explained that the source of the problem originates from the upstream sector.

“So actually, it’s not a price increase, but a price change. Because with this war conflict, the supply of raw materials is hampered right from the upstream. Both oil and naphtha cannot exit the Strait of Hormuz,” said Fajar on Thursday (19/3/2026).

Raw material prices have risen rapidly in a short time. Prices have gone from US$1,100 per ton to US$1,400. This level has the potential to rise to US$1,600.

Naphtha has also increased from US$600 to US$800. Prices are approaching US$900. This situation is causing producers to hold back on sales. Supplies are prioritised for old contracts.

“Indeed, there has been a change in prices,” said Fajar.

The industry is beginning to implement on-off production strategies. Production is halted when utilisation is low and resumes when raw materials become available.

“It seems that the on-off strategy will be used for the medium term. They would rather stop production if the upstream industry is below 60 percent. Then, when supplies are thin and raw materials are available again, they resume,” he explained.

“In the second and third quarters, goods from China will definitely dominate imports to Indonesia or ASEAN. Because goods from the Middle East certainly cannot pass through,” said Fajar.

Products from the Middle East are hampered due to route closures and facility disruptions.