Minister of Industry Agus: Conflicts in the Middle East Put Pressure on Plastic Prices

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: ANTARA)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita spoke up regarding the increase in plastic prices that are now haunting business actors and the public as consumers.

Agus admitted that there was an increase in prices at the production level as the cost of global raw materials soared due to the conflict in the Middle East.

Escalation of the conflict, he said, 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.

"Considering that plastic is a product derived from a petroleum-based petrochemical process, disruptions in global distribution and production lines do put pressure on cost structures at the upstream level," Agus said in a written statement, Wednesday, April 8.

He explained that his party continued to strengthen coordination with manufacturing industry players to mitigate the impact of global supply chain disruptions.

This step was taken to maintain the resilience of the national industry so that it is still able to meet domestic and export needs.

"Synergy between the government and business actors is the key to ensuring that the industry remains resilient in the midst of global pressure," he said.

His party, continued Agus, 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.

In addition, the industry is also optimizing the use of LPG as a buffer material in the production process.

The government also encourages the use of high-quality recycled plastics as a substitute to maintain supply stability.

The former Minister of Social Affairs (Mensos) also denied the issue of the availability of plastic products that can only last until May 2026.

This is because, according to Agus, based on the industrial confidence index (IKI) data, the condition of the packaging industry in March 2026 still shows a very high level of expansion.

"So, the stock of plastic products is still sufficient because the sub-sector of the industry is performing well," said Agus.

Furthermore, Agus appealed, so that the public does not need to panic about plastic product stocks.

"The public and industry players do not need to panic. Plastic products are guaranteed to be available in the market," he added.