Video: Rupiah Weakens Due to War Effects, Petrochemical Production Costs Surge

The intensifying turmoil of the Middle East war and the Russia versus Ukraine conflict has impacted the national petrochemical industry by increasing concerns. Chairman of the Indonesian Petrochemical Producers Association (AIPP), Hari Supriyadi, stated that global geopolitical tensions have at least two main effects. These include uncertainties in the global supply of petrochemical raw materials and rising raw material prices amid the weakening exchange rate of the rupiah, causing the Cost of Goods Manufactured (HPP) to surge. The petrochemical industry’s dependence on imported raw materials forces businesses to enhance efficiency to survive. Industry players hope for government support for the petrochemical sector to maximise the use of domestic raw materials, one of which is the utilisation of Natural Gasoline (Pentana Plus), but its selling price remains quite high for the industry, so they hope that the Specific Natural Gas Price policy (HGBT) can also be applied to the petrochemical industry. What are the impacts and strategies of the petrochemical industry in facing the effects of war? For more details, watch the dialogue between Bunga Cinka and the Chairman of the Indonesian Petrochemical Producers Association (AIPP), Hari Supriyadi, in Manufacture Check, CNBC Indonesia (Monday, 11/05/2026).