April 21, 2026 | 09:03 pm
TEMPO.CO, Jakarta - The Indonesian Ministry of Industry is urging players in the food and beverage industry to increase the use of paper-based packaging as an alternative to plastic. Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, stated that this step is effective in reducing dependence on plastic amid the surge in prices.
The increase in plastic prices is due to disruptions in naphtha supply from the Middle East caused by the escalating conflict between Iran and Israel, which has impacted the global petrochemical industry. "We encourage the use of paper-based packaging because many food and beverage industries can use this packaging," Putu said during a media briefing at the Ministry of Industry office on Tuesday, April 21, 2026.
According to him, from a pricing perspective, paper-based packaging is quite competitive. However, its development heavily depends on the readiness of the industrial ecosystem and investments in the sector. "This may be the game changer," he said.
Putu explained that currently, approximately 48 percent of packaging in the food and beverage industry is plastic-based, while paper packaging accounts for about 28 percent.
Based on this proportion, he estimates that paper packaging is widely used in Indonesia. Additionally, this type of packaging is considered durable enough to maintain product quality. "For products such as milk, juice, and many others, it is already competitive," he said.
Previously, Putu mentioned that the stock of plastic raw materials for the food and beverage industry is available for the next two months. This condition has made industry players start to worry about future plastic supplies.
Based on a meeting of the Ministry of Industry with plastic producers, Putu explained that plastic raw materials are currently available again. He said that previously, plastic ore stocks had stalled, but they are now available again. "Now it is available and there is no concern. Well, the concern is about the price increase," he said.
He stated that the main concern now is ensuring the availability of supplies. To reduce prices, he said, the Ministry of Industry has several proposals for industry players.
One of them is the exemption of import duties on LPG for the plastic industry. "This is proposed by the Minister to temporarily exempt import duties," he said.
Geopolitical tension disrupting the energy supply chain has caused a surge in plastic prices. Around 70 percent of global naphtha supply comes from the Middle East. Naphtha, a liquid refined from crude oil, is the main raw material used in the petrochemical industry to produce plastic.
The increase in plastic resin prices directly and significantly impacts the operational costs of businesses worldwide, especially sectors heavily dependent on packaging such as food and beverage, FMCG, pharmaceuticals, logistics, and retail.
Ilona Estherina Piri contributed to the writing of this article
Read: DPR Speaker Suggests Use of Leaf Packaging as Plastic Costs Jump
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