Video: Inaplas: Plastic Raw Material Prices Surge 60% Due to War Effects

Jakarta, CNBC Indonesia - The Iran vs America-Israel war, which has led to the closure of the Strait of Hormuz, is also affecting the surge in plastic prices. This situation is inseparable from the disruption in supplies and the sharp rise in crude oil and naphtha raw material prices, which are crucial for plastic production.

Secretary General of INAPLAS (Indonesian Olefin, Aromatic, and Plastic Industry Association), Fajar Budino, stated that the increase in plastic raw material prices has occurred since the second week of the Middle East war. Previously, the price of plastic raw materials at USD 1,000 per metric tonne had already risen four times, with each increase reaching 40-60%, breaching USD 1,800 per metric tonne.

In facing this situation, business players are seeking alternative sources of plastic raw materials, namely naphtha cracker, besides those from the Middle East, such as from the United States, but the challenges include longer delivery times and higher shipping costs.

What is the condition of the plastic price increase like? For more details, watch the dialogue between Dina Gurning and Secretary General of INAPLAS (Indonesian Olefin, Aromatic, and Plastic Industry Association), Fajar Budino, in Manufacture Check, CNBC Indonesia (Monday, 13/04/2026).