War Causes Plastics to Suddenly Become Expensive Goods!

Plastic prices are rising due to supply disruptions of raw materials caused by the war in the Middle East. The price increase is occurring because Indonesia still depends on imported plastic raw materials.

According to data from the Central Statistics Agency (BPS), cited on Sunday (5/4/2026), Indonesia imported plastics and plastic goods (HS 39) worth US$873.2 million or the equivalent of Rp14.78 trillion (exchange rate Rp16,927) in February 2026. These goods are supplied from various countries.

Imports of plastics and plastic goods in February 2026 came mostly from China at US$380.1 million. This was followed by Thailand at US$82.7 million and South Korea at US$66.7 million.

Indonesia also recorded imports of plastics and plastic goods from the United States (US), which is currently at war with Iran. The imports reached US$29.9 million in February 2026.

Indonesia also imported plastics and plastic goods from Saudi Arabia worth US$14.9 million in February 2026. Suppliers also come from Vietnam, Japan, Singapore, Malaysia, and Taiwan.

Market Traders Are Crying Out!

Meanwhile, the Chairman of the Infocom Sector of the Central Board of the Indonesian Market Traders Association (DPP IKAPPI), Reynaldi Sarijowan, said the plastic price increase is happening because Indonesia still depends on imported plastic raw materials. The price hike is said to reach up to 50%.

“We have been monitoring it for quite some time; when entering the holy month of Ramadan, plastic prices started to rise. The peak is that the price increase we have calculated reaches 50%,” said Reynaldi to detikcom on Sunday (5/4/2026).

Reynaldi gave an example that the price of plastic bags, which was initially Rp10,000, has become Rp15,000 per pack, and other types of plastic have risen from Rp20,000 to Rp25,000.

“Indeed, this is a risk if we still experience import dependency, so the impact from the war in the Middle East has serious implications domestically, so the increase will continue to occur. We monitor that the plastic price increase is very significant,” he added.

Reynaldi said market traders who predominantly use plastic to wrap their goods are already shouting about this price increase. He did not deny that the plastic price rise could potentially pull up the prices of commodities sold in the market.

“Mums who use plastic for their goods are certainly already complaining loudly; this will make market prices also potentially experience an increase,” said Reynaldi.

As is known, plastics mostly come from the processing of petroleum, including polyethylene (PE) and polypropylene, two types of plastic that are the most widely used in the world. The rise in oil prices due to the war not only increases plastic production costs but also the price of raw materials.

Moreover, the Middle East region is a major global supplier of plastic raw materials. Based on data from S&P Global Energy, this region contributes around 25% of the world’s polyethylene and polypropylene exports. The ongoing conflict automatically disrupts the supply chain of those petroleum derivative products.

“About 84% of the Middle East’s polyethylene capacity depends on the Strait of Hormuz for exports via sea routes,” said Harrison Jacoby, Director of Polyethylene at Independent Commodity Intelligence Services, quoted from CNN.