Jakarta (VNA) – Indonesia’s plastic industry is facing mounting pressure as the Middle East conflict disrupts global supply chains, constraining access to petrochemicals and driving up prices.
As reported by the local online English-language newspaper Jakarta Globe, the disruption is partly linked to restricted traffic in the Strait of Hormuz, a critical artery for global petrochemical shipments. The bottleneck has limited the flow of raw materials from the Middle East, a region that supplies the bulk of Indonesia’s inputs.
Fajar Budiono, secretary general of the Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas), said around 70% of the country’s petrochemical raw materials originate from the Middle East. Supply disruptions have made materials increasingly scarce, with some products nearly unavailable in the market.
“Raw materials are no longer available. Prices are rising, and the gap between minimum and maximum prices is now extremely wide,” Fajar said as quoted by the newspaper.
The uncertainty has forced manufacturers to scale back operations, with many reluctant to accept new orders due to concerns over raw material availability. Industry players are seeking alternative supplies from Asia and Southeast Asia, but those efforts have also hit obstacles.
While hoping tensions in the Middle East to ease soon, Fajar said the current crisis should serve as a catalyst for Indonesia to fast-track industrial transformation and reduce dependence on a single source of raw materials./.
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