Jakarta. The government expects domestic plastic prices to start easing as early as this month, as it accelerates imports of raw materials from India, the United States, and several African countries to offset supply disruptions linked to geopolitical tensions.

Trade Minister Budi Santoso said the government is fast-tracking imports of plastic feedstock from those countries to boost domestic supply and curb recent price spikes.

“Prices should come down as soon as possible, potentially within this month,” Budi told reporters at the Economic Affairs Ministry on Monday.

He said the recent surge in plastic prices was driven by disruptions in the supply of naphtha, a key raw material for plastic resin, which Indonesia has largely sourced from the Middle East. The disruption stems from geopolitical conflict affecting global energy distribution.

In response, the government is diversifying supply sources. Busan noted that import processes from the new supplier countries are already underway, although it will take time before the additional supply reaches the domestic market.

“Yes, the imports from those countries are already being processed. But it takes time, so for now, industries are still relying on existing stock,” he said.

He stressed that accelerating imports remains the government’s main strategy to stabilize prices, while industries continue to depend on current inventories until fresh supply arrives.

“In principle, we are seeking alternative countries that can supply the raw materials,” he added.

Busan also acknowledged that supply disruptions are global, with some producing countries facing pressure severe enough to temporarily halt production. The government is therefore continuing to explore additional sourcing options beyond the initial three countries to ensure supply stability and bring prices under control.

For small businesses, the consequences are immediate. Plastic is not a discretionary input but a basic necessity used to wrap food, package goods, and deliver services. Yet many entrepreneurs are choosing not to pass on the higher costs to consumers, wary of weakening demand in an already fragile economic environment.

In the industrial city of Cilegon, laundry operators are absorbing the price increases through efficiency measures. Rather than raising service fees, they are reducing plastic usage, tightening operational costs, and improving productivity. The aim is to retain customers, even if margins shrink.

“If we increase prices, customers may leave,” one laundry owner told Beritasatu.com. “So we cut costs internally but maintain service quality.”

Such strategies reflect a broader pattern in Indonesia’s informal and small-business sector, where survival often depends on flexibility rather than pricing power. Consumers, for their part, have welcomed the restraint. 

Elsewhere, however, the pressure is proving harder to contain. In Polewali Mandar, West Sulawesi, traders report plastic bag prices rising from Rp 10,000 to Rp 15,000 per pack in just a week. While most have held retail prices steady, profits are thinning.

“Costs have gone up from the source,” said one trader, citing disrupted imports and higher oil prices. “We can’t avoid using plastic, so we just accept smaller margins.”

In some cases, businesses have been forced to raise prices. Vendors reliant on plastic packaging — such as ice sellers and street-food operators — say the increase in input costs has left them little choice but to pass on part of the burden to customers.

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