Supply Disrupted by War, Plastic Industry Hunts for Raw Materials in Africa and the US
JAKARTA, KOMPAS.com – The plastic industry is beginning to seek new sources of raw materials amid supply disruptions from the Middle East. This step is being taken following interruptions in naphtha distribution due to conflicts in the region.
The Indonesian Association of Olefin, Aromatic, and Plastic Industries (Inaplas) states that naphtha supplies have been affected by the closure of the Strait of Hormuz. This situation is hindering around 70 percent of fossil-based plastic raw material supplies.
Inaplas General Secretary Fajar Budiono said that industry players are now hunting for alternative suppliers from various regions.
“It could be from Africa, it could be from Central Asia, or even from America. Right now, they are trying to find alternative supplies,” Fajar said when contacted by Kompas.com via telephone on Thursday (2/4/2026).
Shipments of naphtha from the Gulf region usually take 10 to 15 days. Alternative routes from outside the region increase delivery times to up to 50 days.
“This will be 50 days from now; indeed, we will have to maintain a balance between demand and supply because the goods will definitely come from outside the Middle East (West Asia),” Fajar stated.
This condition requires industry players to maintain a balance between supply and demand to avoid shortages of raw materials.
The use of propane is still constrained by import duties. The industry is requesting the government to review this policy to make it more flexible.
“We are asking for government assistance to re-examine the import duties on propane or LPG as petrochemical feedstock,” Fajar explained.
In addition, industry players see opportunities in using domestic condensates. The utilisation of this material is still awaiting policies from the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Industry.
“The volume of condensates that can be used as DMO (domestic market obligation) as an alternative substitute for the aforementioned raw materials. That is from the upstream side,” Fajar said.