Trade Minister: Plastic import alternatives prepared to maintain price stability

Jakarta (ANTARA) - Trade Minister Budi Santoso stated that the government is seeking various alternative countries as suppliers of plastic raw materials to maintain domestic supply and price stability amid global supply chain pressures.

Budi explained that the main raw material for plastic pellets, naphtha, has traditionally been supplied from the Middle East region. However, global conditions have lengthened shipping times and intensified competition among countries to obtain the material.

“So indeed, for plastics, the raw material for plastic pellets has traditionally been naphtha from the Middle East. Now we have alternatives from Africa, India, and America,” Budi told ANTARA at the ANTARA Heritage Center, Jakarta, on Thursday.

According to him, global logistics disruptions have slowed the distribution of raw materials. At the same time, many countries are competing for naphtha supplies, affecting the global availability of plastic raw materials.

The government is currently prioritising the stabilisation of plastic prices through strengthened supply. The Ministry of Trade (Kemendag) continues to coordinate with industry players and Indonesian trade representatives abroad to open access to new plastic raw material suppliers.

Budi also noted that the rise in plastic prices has not yet significantly affected commodity prices in the market.

Budi added that the government is opening communications with all countries that have the potential to supply plastic raw materials so that national industry players have more import source options and do not rely on a single region.