To Curb Plastic Prices, Indonesia Imports Raw Materials from India, America, and Africa

Jakarta, CNBC Indonesia - Trade Minister Budi Santoso has revealed that imports of plastic raw material naphtha will start arriving in Indonesia this month from alternative producer countries: India, the United States, and Africa.

These alternative imported raw materials are being brought in to stabilise domestic plastic prices, which have skyrocketed due to disrupted supplies from the Middle East amid the war between the United States and Israel with Iran.

“Yes, the process has already begun; from those three countries, it’s underway. But it takes time, so right now we’re managing with existing stocks,” Budi said at the Coordinating Ministry for the Economy office in Jakarta on Monday (13/4/2026).

Although commitments for imports have been obtained from producers, Budi emphasised that the entry of these key materials for processing plastic pellets will require time, which he cannot specify. This includes the volume of imported plastic that will enter.

“We have indeed secured them. But the quantity or timing will also take time. Because it’s a shift, and with the current war conditions, shipping might be a bit slower,” he stressed.

Budi affirmed that the rise in domestic plastic prices is not unique to Indonesia but is occurring worldwide. Moreover, plastic itself has now become a commodity facing a raw material supply crisis in various countries.

“Plastic producers in several countries like Taiwan, South Korea, Thailand, Vietnam, and Singapore—many have declared force majeure. So this is indeed a global crisis related to the raw material shortages,” said Budi Santoso.

With the import of naphtha from alternative countries, Budi is confident that domestic plastic prices will normalise from their recent increases.

“It will (drop) as soon as possible. That’s why we must act quickly with solutions from other countries that can supply. This is a global crisis, meaning our suppliers have mostly been from the Middle East so far,” he stated.