Indonesian Political, Business & Finance News

Zulhas Says Plastic Price Increase Should Be 30 Percent

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Coordinating Minister for Food Affairs Zulkifli Hasan, or Zulhas, has stated that the government is taking action to address the impact of the Middle East conflict, which is beginning to spill over into the industrial raw materials sector, including plastic prices in the domestic market.

Zulhas said his side is summoning several plastic resin entrepreneurs to seek joint solutions.

“We are summoning several entrepreneurs to discuss this plastic resin issue. How to ensure the increase remains reasonable, not too (high),” Zulhas said in Yogyakarta on Thursday, 16 April 2026.

Zulhas acknowledged that the rise in plastic prices is a direct impact of dependence on imported crude oil raw materials, whose prices are currently fluctuating.

He said the government is currently endeavouring to ensure that the plastic price increase at the consumer level can be kept to a more rational figure, namely around 30 percent. This is because the reality on the ground shows a much heavier situation. “The price increase in the market is up to 60-70 percent; it should only be around 30 percent,” Zulhas stated.

Although plastic prices are soaring, Zulhas assured that staple commodities such as rice, petrol, and other food needs have not experienced price increases to date.

However, the issue arises in the packaging aspect, where the public now has to dig deeper into their pockets just to buy plastic bags when shopping.

He gave an example that the price of plastic bags, which was previously only Rp 500, can now reach Rp 2,000, which indirectly makes the total shopping expenditure feel more expensive even though food commodity prices remain stable.

“Now it’s the plastic that’s rising, not the rice. But if there’s no plastic, then what? Rice packaging must use bags; this is the troublesome part if there’s none,” he said.

As a long-term solution to reduce dependence on fossil-based plastic, Zulhas sees a great opportunity for Indonesia to switch to organic-based packaging.

Given the abundance of biological natural resources in the country, he encourages the development of plastic substitute alternatives that are more environmentally friendly.

According to him, Indonesia’s organic wealth potential should be maximised to create packaging innovations that can compete in terms of function and price.

“It’s great if we have alternatives (for packaging); we are actually rich. Rich in organics; if plastic can be replaced with organics, that would be excellent,” Zulhas said.

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