How the Middle East Conflict Is Affecting the Printing Industry

TEMPO.CO, Jakarta - The country's printing industry is under pressure due to the unstable global geopolitical situation. Mughira Nurhani, the Chair of the Indonesian Printing Companies Association (PPGI), stated that the current global geopolitical conflicts are disrupting the stability of material distribution within the country.

According to him, ongoing international conflicts have led to increased logistics costs and fuel prices for ships. Ultimately, these costs are passed on to consumers in the form of higher paper prices.

"Although Indonesia is capable of producing around 70 percent of its local paper needs, the industry still depends on imported long-fiber pulp," said Mughira during the Jogja Printing Expo 2026 at the Jogja Expo Center (JEC) in Yogyakarta on Wednesday, April 8, 2026.

He revealed that this raw material is produced only in countries with four distinct seasons, such as the United States, Canada, and Finland. Therefore, when political situations disrupt global trade routes, the supply of long fiber can also be affected. This material is essential for maintaining print quality.

Mughira disclosed that the trend of rising prices has been ongoing since the beginning of the year and is difficult to normalize. "The prices have already increased; they have been on the rise since the beginning of the year because paper prices never decrease," he stated. Apart from the import issues regarding long-fiber pulp, the recycled paper supply chain, or brown paper, also faces serious obstacles.

Unlike Japan, which has a systematic system for collecting and auctioning off used paper, Indonesia is still struggling to manage paper waste properly. As a result, the stock of recycled paper raw materials often falls short or ends up in the wrong hands.

Using old document paper as food wrappers in markets is evidence of suboptimal management and threatens consumer health due to the ink's chemical content. The fragility of this supply chain also extends to the plastic-based printing sector.

Because plastic resin is a byproduct of petroleum, its price fluctuates significantly based on the dynamics of the global energy market and geopolitical conflicts. This pressure is increasingly being felt as the graphic industry adapts to the digital era, which promotes paper efficiency.

Nevertheless, Mughira expressed gratitude that the packaging sector can still be a savior. He noted that almost all manufactured products and consumer goods still require packaging for protection, ensuring that demand in this segment remains preserved.

Furthermore, PPGI hopes for strategic measures to protect the domestic industry. Currently, 70 percent of the total national paper and pulp factory production capacity of 22 million tons per year is allocated for the export market.

As the school book printing season approaches, starting at the end of April or early May, securing raw materials for domestic needs must take priority. "Despite the pressure, the industry is still holding on because almost all manufactured products and consumer goods still require packaging," Mughira said.

The association is also urging the government to enforce the use of locally printed packaging for every product circulating in Indonesia to strengthen the position of domestic businesses.

Meanwhile, the committee of Jogja Printing Expo (JPE) 2026, Daud Salim, highlighted that amidst the current global economic challenges, industry leaders are expected to continue adapting to technological innovations and exploring new collaborations within the graphic industry.

"Modern printing technology innovations continue to expand, covering various media, not only limited to paper but also including textiles, acrylic, metal, leather, and even wood printing," he stated.

Read: ID Food Laments Plastic Packaging Supply Crunch

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