Plastic Industry Seeks Raw Material Alternatives

Rendy Andriyanto
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
Plastic Industry Seeks Raw Material Alternatives

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Gotrade News - The rising cost of plastic is pushing Indonesian industries to seek alternative raw materials. The sector aims to maintain production sustainability amid increasing global pressures.

Raw Material Diversification

A high reliance on imports is a primary concern for the plastic industry. The national industrial framework faces risks from external volatility affecting supply chains.

The Indonesian Olefin, Aromatic, and Plastic Industry Association (Inaplas) highlights the need for diversification. Utilizing alternative materials becomes a strategy to mitigate the impact of global uncertainties.

Approximately 50% of plastic raw materials are still import-dependent. Even minor distribution disruptions can potentially impact production stability.

Alternative Supply Options

The industry is beginning to open communication with alternative countries. Central Asia, Africa, and the Americas are in focus despite logistical challenges.

The lead time for shipping alternative raw materials is estimated to be longer, around 50 days. However, this is necessary to secure long-term supply.

The government has room to respond through flexible policies. Fiscal and energy incentives are a priority to support vulnerable industries.

Global conflicts are a key factor in determining economic impact. Dependence on imports could add challenges if conflicts persist.

Core emphasizes the importance of reducing dependence on imported raw materials. Developing local resources is needed to become more self-sufficient in the long term.


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