Indonesia Moves To Stabilise Plastic Supply, Urges Producers To Cut Margins For SMEs

JAKARTA, April 15 (Bernama) -- Indonesia is taking steps to safeguard plastic supply and ease cost pressures on small and medium industries amid a looming global raw material shortage.

Industry Minister Agus Gumiwang Kartasasmita stressed that the government is committed to maintaining the availability of plastic while engaging producers to adjust their profit margins, particularly to support smaller manufacturers that are more vulnerable to price volatility.

“With regard to plastic, I will approach producers so that we can support small industries and encourage them to reduce their margins.

“As a result, the pricing imposed on small industries will not hinder their growth or development in Indonesia,” he said, according to ANTARA News Agency on Wednesday.

Agus said the government is also exploring alternative sources of supply to ensure continuity in domestic production, including seeking cooperation with other countries capable of meeting Indonesia’s demand amid global shortages of plastic raw materials.

“We must also understand that Indonesia is not the only country that is facing the scarcity of plastic and naphtha, but the entire world. 

“Therefore, there is competition among countries and business players to obtain supplies of plastic,” he said, urging industry players to adopt more flexible procurement strategies, including tapping into available supplies in international markets when necessary.

-- BERNAMA