TEMPO.CO, Jakarta - The soaring costs of plastic are affecting the prices of food and beverages, said the chair of the Indonesian Food and Beverage Association (GAPMMI) Adhi S. Lukman, amid a supply crunch for the raw materials of plastic packaging.
"This is a quite complicated situation, especially in the food and beverage sector. Nearly all industries utilize plastics, but it's difficult to get raw materials from suppliers," he said after attending a brief on US trade on Monday, April 13, 2026, as quoted by Antara.
"Some suppliers have informed that they are facing a shortage in packaging raw materials, with a few saying the stock will be depleted by May or June," he said.
Adhi further detailed that the plastic cost hike varied, from 30 to 100 percent, including for simple packaging such as plastic for meatballs and frozen meat products.
"For example, packaging contributes about 25 percent to the basic costs. A 100 percent increase will surely cause the industry to face difficulties in selling their products because they will be expensive, while purchasing power is limited," he said.
In response, some industry players have started to adjust the selling prices of their products, where basic commodities with plastic packaging seeing price hikes in the market. "Some basic commodities like rice and cooking oil already saw price adjustments. It's not the item itself, but the packaging that results in higher prices," he said.
Adhi explained that the cost pressure has also eroded the business margins. "Let's say that if the packaging contribution is 20 percent, if the price (of plastic) rises by just 60 percent, the basic cost will rise by about 12 percent. If we raise the selling price by 5 percent, this makes the cost pressure reaching 7 percent," he said.
To overcome the limited supply, Adhi said that industry players are urging the government to open the option of importing plastic raw materials from other alternative countries.
Read: ID Food Laments Plastic Packaging Supply Crunch
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