TEMPO.CO, Jakarta - The price of plastic in Indonesia has sharply increased recently due to disruptions in the supply of nafta (a derivative of crude oil that is a key material in plastic production) from the Middle East. The conflict involving Iran, Israel, and the United States has disrupted the distribution of energy and chemicals in the region, triggering a global price hike.
Minister of Trade Budi Santoso stated that the government is seeking alternative sources of nafta to ensure a steady supply and stabilize domestic prices. "Indeed, one of the raw materials for plastic, namely nafta, needs to be imported from the Middle East. However, the Middle East is currently being affected by the conflict between Iran, Israel, and the United States," said Budi after visiting the Sukoharjo Regency in Central Java on Thursday, April 2, 2026.
Budi mentioned that there are at least three countries that serve as alternative suppliers of the raw material: Africa, India, and America. Negotiations with nafta suppliers from these three countries are underway, although contract settlements and distribution still require time.
In addition to supply issues from the Middle East, Budi revealed that several countries that have been global plastic producers and suppliers are facing production challenges. Several facilities in Singapore, Thailand, South Korea, and Taiwan have reportedly experienced force majeure, rendering them unable to fulfill supply contracts.
"So, this is indeed a global problem. Hopefully, the conflict will end, and everything will return to normal later," he said.
One plastic shop owner in Sukoharjo, Central Java, 47-year-old Zubaedah, mentioned that the plastic price surge has been felt since before the 2026 Eid al-Fitr. "Before Eid, plastic prices had risen by an average of around 30 percent. After Eid, the increase reached an average of about 70 percent," said Zubaedah when contacted by Tempo.
She gave examples of high-quality plastic brands that used to cost Rp7,000 per pack for certain sizes, but now cost Rp10,000 per pack. The price of a certain size of plastic cups from another brand has increased from Rp8,000 to Rp13,000 per pack.
Read: Middle East Conflict Risks Rp56tn Loss in Tourism, Says Minister
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