TEMPO.CO, Jakarta - State-owned food holding company ID Food (PT Rajawali Nusantara Indonesia) is facing difficulties in obtaining plastic packaging materials. "We are feeling the shortage of packaging materials as food players," said the company's director of Ghimoyo during a working meeting with the House of Representatives (DPR) Commission IV on Tuesday, April 7, 2026.
Ghimoyo explained that the plastic crisis stems from a scarcity of raw materials or plastic pellets caused by the Middle East conflict. He emphasized the importance of plastic packaging for products such as rice, cooking oil, and fertilizer. "This is more crucial because all food, all fertilizers, and all rice use plastic bags," he stated.
The price of plastic in Indonesia has spiked recently due to disruptions in naphtha supply, a crude oil derivative and primary material for plastic production imported from the Middle East. The Iran-Israel conflict has disrupted energy and chemical distribution in the region, driving price hikes across the global market.
Trade Minister Budi Santoso previously stated that the government is seeking alternative naphtha sources to ensure a stable domestic supply and normalize prices. "We import naphtha as one of the raw materials for plastic from the Middle East. However, the Middle East is currently affected by the Iran-Israel and United States war," he said after a visit to Sukoharjo Regency, Central Java, on Thursday, April 2, 2026.
Budi mentioned that at least three countries—South Africa, India, and the United States—are being eyed as potential alternative suppliers. Negotiations with naphtha suppliers from these three areas are currently underway, though finalizing contracts and organizing distribution logistics will take time.
In addition to Middle East supply issues, Budi revealed that several major global plastic-producing hubs are facing their own production hurdles. Facilities in Singapore, Thailand, South Korea, and Taiwan have reportedly declared force majeure, rendering them unable to fulfill supply contracts. "So this is indeed a global problem. Hopefully, the war will end, and everything can return to normal later," he added.
Zubaedah, a 47-year-old plastic shop owner in Sukoharjo, stated that the price surge has been felt since before the 2026 Eid holidays. "Before last Eid, the price of plastic had increased by an average of around 30 percent. After Eid, it increased again by an average of around 70 percent," she told Tempo, citing examples of high-quality plastic brands that once cost Rp 7,000 per pack for certain sizes but have now hit Rp 10,000. Another brand of plastic cups has surged from Rp 8,000 per pack to Rp 13,000.
Septia Ryanthie contributed to the report
Read: Indonesia Seeks Plastic Raw Materials from Africa, India, and the US
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