Trade Minister Ensures Search for Alternative Sources of Plastic Production Raw Materials

Jakarta (ANTARA) - Trade Minister (Mendag) Budi Santoso has assured that the government is seeking alternative sources for plastic raw materials to anticipate disruptions in imports from Middle Eastern countries.

Responding to reporters’ questions after a press conference at the Presidential Staff Office in Jakarta on Wednesday, Trade Minister Budi Santoso explained that the situation in the Middle East is causing impacts on naphtha import activities, which is used to produce plastic.

“Naphtha is imported from the Middle East. So we are affected by the raw materials that we import from the Middle East. What are we doing next? We are now looking for alternative substitutes or alternatives from other countries,” said Trade Minister Budi.

Naphtha itself refers to a hydrocarbon compound derived from petroleum that serves as the main raw material for producing plastic resin, rubber, and solvents.

He stated that approaches have already been made to several countries, including India, as well as various parties in Africa and the Americas.

“Indeed, this takes time because suddenly we have to shift from the Middle East to other countries. So we hope this process can run well, so that prices can return to normal,” he added.

The Ministry of Trade (Kemendag) has itself held discussions with associations and industry players to find alternatives other than the Middle East.

Kemendag is also continuing to communicate with Indonesian government representatives abroad to help find new suppliers to ensure that the supply of plastic raw materials remains smooth.

He highlighted that similar conditions are not only occurring in Indonesia but also in several other countries, including Singapore, China, South Korea, Thailand, and Taiwan.

“But for raw materials, we continue to do so to ensure that domestic production returns to normal and the plastic supply is well maintained,” he explained.

Previously, several countries have reported securing plastic raw material naphtha. This includes South Korea, which has banned naphtha exports starting from Friday (27/3) as part of efforts to secure domestic supplies amid concerns over potential import disruptions.