Plastic Product Prices Soar

TEMPO.CO, Jakarta - Weakened rupiah exchange rate against U.S. dollar has prompted the prices of several import commodities to soar, including plastic products. Indonesian Olefin and Plastic Industry (Inaplast) deputy chairperson Budi Susanto Sadiman said the prices of plastic products had increased by 12 percent.

Budi said the dominant factor contributing to the price hike was the prices of imported raw materials, which accounted for 80 percent in the upstream and 60 percent in the downstream for plastic products.

Budi said around 10 percent of the price rise ensued from weakened rupiah exchange rate. “While the other two percent was triggered by the rocketing electricity base tariff and oil fuel prices,” he told Tempo yesterday.

Budi added, however, it was possible for plastic prices to decline should the rupiah exchange rate strengthen against U.S. dollar. On the other hand, he continued, the prices of plastic products would continue to soar if the rupiah weakened further.

Budi said the price hike had affected the targeted plastic consumption this year, which was down by five percent. He said plastic consumption last year reached seven percent with a total volume of 3.2 million tons. This year, plastic consumption was pegged at eight to nine percent.

“The target is in line with the assumed economic growth of six percent,” Budi said. He added plastic consumption this year would be around five percent if the economic growth target was revised to 5.34 percent. 

 ANANDA TERESIA