Inp.polri.go.id - Jakarta. Indonesia has secured commitments for naphtha supplies from India, Africa, and the United States to stabilize the domestic plastics industry following severe supply chain disruptions in the Middle East.
"We have obtained commitments from Africa, India, and America, and the administrative processes are currently underway," confirmed Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman during a press briefing in Jakarta on Thursday (9/4/2026), as reported by antaranews.com.
The shift came as domestic plastic prices surged by up to 80 percent due to the escalating conflict between the US, Israel, and Iran, which hindered the flow of nearly 4 million tons of naphtha through the Strait of Hormuz monthly.
To ensure long-term stability, the government is also fast-tracking a diversification strategy to replace petroleum-based naphtha with local biomaterials. Officials are currently collaborating with MSMEs to scale the production of seaweed and cassava-based plastics, aiming to reduce operational costs and mitigate Indonesia’s dependency on volatile global oil derivatives.
(mg/inp/pr/rs)
