Jakarta (ANTARA) - The Middle East conflict has recently disrupted global supplies of raw materials and plastics, which play a key role in many industries.

When plastic supplies are disrupted, the effects ripple across the entire value chain—from upstream production down to the end consumer.

Global geopolitical tensions and distribution bottlenecks have significantly delayed the delivery of raw materials like naphtha. Shipments that previously took just two weeks now often take more than a month.

These hurdles cause more than just a delay in production; they drive up logistics costs and, inevitably, squeeze profit margins for industry players.

In response, the Indonesian government has decided to move beyond a mere reactive approach.

Efforts to maintain national plastic resilience are being carried out comprehensively from upstream to downstream, spanning large-scale corporations to Small and Medium Enterprises (SMEs).

Industry Minister Agus Gumiwang Kartasasmita emphasized that there has been a guarantee of plastic availability from domestic industry players.

He noted that, to date, industries have successfully maintained secure stock levels despite ongoing global pressures.

The statement serves as a vital signal for the business community, as supply is the foundation of production sustainability. Without it, industries risk facing capacity reductions or even partial operational shutdowns.

Industry players have shown their commitment to maintaining stability.

Petrochemical producer Lotte Chemical Indonesia is prioritizing the needs of the local market, particularly for downstream sectors that rely on plastic raw materials.

This move is vital to ensure that domestic needs are met and not sidelined by export demand.

For the food and beverage industry, plastic still has great significance to ensure secure packaging. Without adequate packaging, the risk of product damage increases, which can ultimately erode profits and disrupt supply.

The Indonesian Food and Beverage Entrepreneurs Association (GAPMMI) highlighted that certainty regarding the availability of raw materials is crucial to ensure the continuity of food production and distribution.

It also emphasized that disruptions in the packaging sector could have a direct impact on price stability and product availability in the market.

To address the issue, the Indonesian government is not only focusing on short-term solutions. A long-term strategy is already in place, focusing on diversifying raw material sources to reduce import dependency, which is viewed as a vulnerability.

Domestic production capacity for plastic raw materials, such as naphtha, currently stands at 7.1 million tons per year. With annual demand reaching 9.2 million tons, there remains a supply gap of 2.1 million tons that must be met through imports.

Furthermore, the industry is currently pushed to seek alternative materials, including optimizing the use of liquefied petroleum gas (LPG) as a secondary material to support production.

Some initiatives have even begun exploring bio-based materials as substitutes.

In addition to diversification, a circular economy approach is also being pursued.

Supply disruptions have ironically created an opportunity to strengthen the plastic recycling system, as the country's recycling potential is considered underutilized.

Executive Director of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti, assessed that the current situation could serve as momentum to fast-track the development of the recycling industry.

The recycling industry now accounts for 20 percent of the national plastic raw material supply, demonstrating that its role is no longer merely supplementary but has become a vital pillar in sustaining the industrial sector.

By enhancing its recycling capacity and quality, Indonesia not only reduces dependence on imports but also addresses the accumulating waste issue.

This move kills two birds with one stone: securing raw material supplies while promoting environmental sustainability.

In the long term, this approach is expected to be able to create a more resilient and sustainable industrial ecosystem.

The Ministry of Industry is currently accelerating the use of non-plastic packaging, specifically paperboard-based aseptic packaging, as an alternative for industrial products.

This type of packaging is considered highly competitive and already holds a significant market share, accounting for approximately 28 percent of all packaging used in the food and beverage industry.

National demand for aseptic packaging is estimated at approximately 8.3 billion units per year, with around 4.8 billion of them coming from the milk and dairy product segment, while the remainder comes from tea and coffee-based beverages.

Additionally, demand is bolstered by plant-based products, such as coconut milk, oat milk, and mung bean drinks.

The challenge of disruptions in the global plastic supply chain does not stop at the large-scale business level, as SMEs remain the most vulnerable group to supply fluctuations and price volatility.

In this regard, the Indonesian government is striving to ensure the disruptions do not burden business players in this sector. Various mitigation measures have been taken, ranging from maintaining price stability to ensuring uninterrupted raw material distribution.

The goal is vital: to keep SMEs operational and resilient in the face of mounting pressure.

However, it must be underlined that without a strong synergy, every effort taken will not be able to yield the desired results. The government and industry players must work hand in hand, supporting and strengthening one another.

Indonesia is currently at a pivotal point in its industrial journey. The current pressures present not only challenges but also opportunities for improvement.

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