With Assurances from Industry on Plastic Raw Materials, Industry Minister Pushes to Break Import Dependency

Industry Minister Agus Gumiwang Kartasasmita has emphasised that the upstream-to-downstream plastic industry in Indonesia has provided assurances on the availability of stocks for domestic needs, amid disruptions to the supply chain of raw materials. He stated that he had held a meeting with the plastic industry from upstream to downstream in Jakarta on Thursday. All parties are optimistic about the availability of plastic stocks domestically. “We have received assurances from the industry that plastic stocks should not be a problem. I underline the word ‘should’, because the government continues to monitor global developments carefully that impact production and stocks in this subsector,” Agus said in his statement, quoted on Friday, 17 April 2026. Furthermore, his side continues to monitor developments in global geopolitical dynamics, including the situation in the Strait of Hormuz, which has the potential to affect the supply chain of petrochemical raw materials and the national plastic industry subsector. In addition, the attending industry also expressed its commitment to maintaining the continuity of plastic supplies, particularly for small industry players, so that their products remain competitive in the market. The Ministry of Industry also understands that geopolitical turmoil in the Strait of Hormuz has caused distortions in the pricing structure of plastic products domestically. Price adjustments may occur due to increases in logistics and port freight costs, the imposition of premium surcharges, and disruptions to the delivery time of raw materials from abroad. “Delivery times that previously averaged around 15 days can now increase to up to 50 days. This condition certainly impacts the increase in production cost burdens,” the Industry Minister explained. Furthermore, the Industry Minister emphasised that the current global situation serves as an important lesson for further strengthening the self-reliance of the national petrochemical industry, especially in terms of domestic raw material provision. “This event further underscores the importance of building a strong and independent national petrochemical industry, so that dependence on imported raw materials can continue to be reduced,” he said. In that meeting, it was also revealed that investors hope the petrochemical industry subsector will become increasingly attractive for new investments. One important factor deemed necessary to be strengthened is protection of the domestic market from the onslaught of imported products.