Inp.polri.go.id - Jakarta. Minister of Trade Budi Santoso confirmed on Wednesday (1/4/2026)  that the Indonesian government is actively securing alternative suppliers for naphtha, a critical raw material for plastic production, to mitigate import disruptions from the Middle East.

"We are heavily impacted by naphtha supply chains originating in the Middle East. Consequently, we are now identifying alternative sources and substitute materials from other nations," he said during a press conference at the Presidential Staff Office in Jakarta, as cited by antaranews.com

Naphtha, a petroleum-derived hydrocarbon, serves as the foundational component for plastic resin, rubber, and solvents. To stabilize domestic production and normalize prices, the Ministry of Trade has initiated diplomatic and commercial outreach to potential suppliers in India, Africa, and the Americas. 

Minister Budi noted that while transitioning supply chains is time-consuming, the government is coordinating closely with industrial associations and Indonesian overseas representatives to ensure a steady flow of raw materials.

The Minister highlighted that this supply crunch is a regional challenge also facing Singapore, South Korea, and Taiwan. Notably, South Korea recently moved to ban naphtha exports as of March 27, 2026, to secure its own domestic inventory, further underscoring the urgency for Indonesia to diversify its energy and chemical imports.

(mg/inp/pr/rs)