JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the two-week ceasefire between the United States and Iran would have a positive impact on Indonesia.
The reason is that with the ceasefire, Iran is said to open the Strait of Hormuz, which is the main route for world oil trade.
Currently, the price of plastic products in the country has skyrocketed as a result of the conflict. Iran's move to close the Strait of Hormuz has led to an increase in global raw material costs.
The escalation of the conflict has an impact on the supply of naphtha as the main raw material for the petrochemical industry. Global distribution and production disruptions eventually triggered cost increases at the upstream level.
"And if we see, hopefully, what is the agreement between America and Iran regarding the opening of the Strait of Hormuz can normalize the ecosystem and logistics, so that the plastic needs for our business actors can be met," said Agus to reporters after the launch of the book Ginandjar Kartasasmita Dedication From Time to Time in Jakarta, Thursday, April 9.
Agus did not deny that the conflict between the United States (US) - Israel against Iran had caused the rise in global raw material prices, including Indonesia.
"Yes, yes, I think plastic is normal if there is a little problem regarding supply," he said.
However, said Agus, his party together with upstream petrochemical industry players has prepared a number of strategic steps.
One of them is by finding alternative sources of naphtha supply outside the Middle East region to reduce dependence.
The government also encourages the use of high-quality recycled plastics as a substitute to maintain supply stability.
"But there is a substitution that we have indeed discussed with business actors," he added.
It is known that a ceasefire agreement between the United States and Iran was reached on Tuesday night to Wednesday. According to Arab News reports, the deal came less than an hour before the deadline given by US President Donald Trump to cripple Iran if Tehran did not meet the demands for reopening the Strait of Hormuz.
Previously, Iran had effectively closed the important shipping lane since the beginning of March. The impact was immediately felt in the market, such as global energy prices soaring sharply.
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