Jakarta seeks to ease rising costs and secure materials amid global plastic shortage
Indonesia is taking proactive steps to stabilise plastic supply and protect small businesses as global shortages of key raw materials begin to drive up costs and intensify competition.
Government Steps In To Support Small Industries
Indonesia’s Industry Ministry is working to cushion the impact of rising plastic costs on small and medium enterprises (SMEs), which are most vulnerable to price fluctuations. Industry Minister Agus Gumiwang Kartasasmita said the government will engage producers to lower profit margins, ensuring that plastic prices remain manageable and do not disrupt the growth of smaller manufacturers.
Global Shortage Driving Price Pressures
The move comes as a global shortage of plastic raw materials, particularly petroleum-based inputs like naphtha, begins to strain supply chains. Agus noted that the issue is not unique to Indonesia, with countries worldwide competing for limited supplies, creating upward pressure on prices across the manufacturing sector.
Alternative Supply Sources Being Explored
To address the challenge, the government is actively seeking alternative supply channels through international cooperation. By diversifying sources, Indonesia aims to ensure continuity in domestic production and reduce dependence on any single supply route amid tightening global availability.
Industry Urged To Adapt Procurement Strategies
Authorities are also encouraging businesses to adopt more flexible procurement approaches, including tapping into global markets where supply may still be accessible. This shift is seen as necessary to help industries remain resilient in the face of ongoing supply disruptions.
Balancing Growth With Market Realities
The government’s intervention reflects a broader effort to balance industrial growth with global market realities. By stabilising input costs and maintaining supply, Indonesia aims to protect its manufacturing ecosystem, particularly SMEs that form a critical backbone of the national economy.
Indonesia’s response highlights the growing impact of global supply chain pressures on everyday industries. For Indonesians, especially small business owners, stabilising plastic prices could be crucial to maintaining operations and affordability. For Singaporeans and Indonesians alike, the development underscores how global energy and raw material shocks are increasingly shaping regional economic resilience.
Sources: Malay Mail (2026) , Bernama (2026)
Keywords: Indonesia Plastic Supply, Plastic Shortage Global, SMEs Indonesia Costs, Naphtha Supply Crisis, Indonesia Manufacturing Policy, Plastic Price Increase
