Jakarta. Indonesia will convene a cross-ministerial meeting on Tuesday to address a sharp rise in global plastic prices that is beginning to push up domestic costs, with officials considering potential stimulus for affected industries.

Chief Economic Affairs Minister Airlangga Hartarto said the meeting will bring together ministries and agencies under a government task force to formulate a response, including measures to ease cost pressures on manufacturers.

“We will discuss this in the Economic Acceleration Task Force meeting, including debottlenecking measures,” Airlangga said on Monday at his office in Jakarta.

The talks come as producers warn that soaring plastic input costs are squeezing margins and could soon translate into higher prices for consumers, particularly in food and packaging-related industries.

While Airlangga signaled that incentives are under consideration, he declined to provide details ahead of the meeting. “Let’s wait until tomorrow’s discussion,” he said.

The task force, established under a 2026 presidential regulation, is mandated to coordinate strategic programs to support economic growth, including stimulus measures and the resolution of business bottlenecks. It is co-led by the coordinating minister for the economy and the state secretary and includes key economic ministers.

The government is also moving to secure alternative supplies of plastic raw materials to stabilize domestic prices. Trade Minister Budi Santoso said Indonesia is accelerating imports of naphtha, a key feedstock for plastics, from countries including India, the United States, and several African nations.

“We expect prices to ease as soon as additional supply enters the domestic market, potentially within this month,” Budi said.

Indonesia has been heavily reliant on naphtha imports from the Middle East, where supply disruptions linked to geopolitical tensions have constrained availability. The resulting shortage has driven up global prices and rippled through supply chains.

“Raw materials for plastics largely come from Middle Eastern naphtha. Due to the impact of conflict, supply has been disrupted,” Budi said.

Although import orders from alternative suppliers are already being processed, officials cautioned that it will take time for shipments to arrive. In the interim, industries are relying on existing inventories.

The government is treating the issue as part of a broader global supply crunch, with some producing countries reportedly declaring force majeure due to raw material shortages.

Authorities say diversifying supply sources will remain a key short-term strategy, alongside potential policy support, to cushion industries and contain inflationary pressures.

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