Thursday, 09-04-26
Plastic Price Surge in Indonesia Driven by Middle East Conflict
Indonesia is experiencing a sharp increase in plastic prices due to escalating geopolitical tensions in the Middle East, particularly involving Iran, the United States, and Israel (31/03).
The conflict has disrupted the Strait of Hormuz, a critical route for global oil trade, causing energy costs to spike and pushing up prices of petrochemical raw materials like naphtha, which is a main component for plastic production.
Fajar Budiono, Secretary General of the Indonesian Olefin, Aromatic, and Plastic Industry Association (Inaplas), explained that around 70 percent of domestic plastic raw materials are sourced from the Middle East. “Geopolitical turmoil has a significant impact on domestic supply chains,” he said.
Local retailers report sharp price hikes. One store in Pejaten told Bloomberg Technoz that average plastic prices rose from Rp10,000 to Rp15,000, while jumbo sizes jumped from Rp25,000 to Rp50,000. Styrofoam increased from Rp35,000 to Rp55,000, and plastic cups rose from Rp17,000 to Rp23,000.
Data from the Central Statistics Agency (BPS) shows that imports of plastics continue to grow.
In June 2024, Indonesia imported 90.98 million kg valued at US$202.11 million. By September 2024, imports increased by 21.33% year-on-year to 0.56 million tons, worth US$0.92 billion.
Early 2026 data indicate import values of US$949.2 million in January and US$873.2 million in February, with China, Thailand, and South Korea as the main suppliers.
Industry Sectors Feeling the Pressure
Micro, Small, and Medium Enterprises (MSMEs)
MSMEs that depend on plastic packaging for food and beverage products are significantly affected. Rising costs increase operational expenses and reduce profit margins.
Manufacturing and Food & Beverage Industries
Plastic is essential in manufacturing. Companies have responded by reducing usage, seeking alternative materials, and adjusting production capacity. Adhi S. Lukman, Chairman of the Indonesian Food & Beverage Producers Association (Gapmmi), stated that packaging costs have increased by 50–60% due to reduced production and delivery from upstream plastic producers (31/03).
Automotive Sector
The automotive industry is also affected. Bob Azam, Vice President and Director of PT Toyota Motor Manufacturing Indonesia, warned that shortages of plastic components could disrupt production. He stressed the need to maintain smooth supply chains while improving efficiency (05/04).
Consumer Impact
Consumers are indirectly affected as products with plastic packaging see price increases. Continued price rises in everyday items can reduce purchasing power if the situation persists.
Momentum for Sustainable Alternatives
Experts view the crisis as an opportunity to transition to reusable and eco-friendly materials. Adithiyasanti Sofia, Communication Manager at Dietplastik Indonesia, emphasized that systemic change is needed: “Indonesia needs to enforce circular economy practices, ensure products and packaging are reusable, and develop refill and return logistics systems.”
Ibar Akbar, Zero Waste Campaigner at Greenpeace Indonesia, said, “Dependence on petroleum-based plastics is a ticking time bomb. Now, global conflicts directly disrupt the plastic supply chain.”
A 2021 Greenpeace survey found nearly 70% of respondents were willing to use refillable or reusable products. Akbar highlighted that investments in alternatives and domestic recycling systems are needed to stabilize supply chains and reduce dependency on imported plastics.
Companies Offering Eco-Friendly Packaging Solutions
- Evoware: Produces edible packaging from seaweed, including the Evo Jello Cup. The company also offers plastic-free bags and rice-based straws, promoting the #RathinkPlastic movement globally.
- Avani Eco: Creates bioplastics from cassava starch. In 2016, their products replaced 6,000 tons of traditional plastic in Indonesia. They produce bags, cups, and straws used in hotels and restaurants.
- Plépah: Produces biodegradable packaging from areca palm leaves that are microwave-safe and decompose in about two weeks. They are researching additional materials from rice and coffee waste.
The Complexity of the Global Plastics Supply Chain
A 2025 study published in Communications Earth & Environment analyzed global plastic flows. In 2022, 400 million tons of plastic were produced, including 362 million tons of virgin plastic and 38 million tons of recycled plastic.
Fossil fuels account for 98% of virgin plastics, with bio-based feedstocks at just 2%.
Total plastic waste reached 267.68 million tons, but only 37.96 million tons were recycled. Global trade shows that China, the EU28, and other Asian countries dominate imports and exports at all stages.
Final plastic products led global trade with 111 million tons, with China exporting 44.25 million tons and the EU28 importing 35%.
The study highlights how global conflicts and trade dependencies create vulnerabilities across the entire plastics industry, affecting production, supply chains, and efforts toward sustainability.
This article is a summary of two original articles. The full versions can be read at the following links:
https://waste4change.com/blog/3-perusahaan-penyedia-sustainable-packaging-di-indonesia/
https://www.nature.com/articles/s43247-025-02169-5
PHOTO: FREEPIK
This article was created with AI assistance.
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