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Indonesia mulls subsidies to curb rising plastic costs

..in principle plastic prices are highly dependent on naphtha, which affects production costs,Surabaya, East Java (ANTARA) – Deputy Minister of Trade Dyah Roro Esti Widya Putri said the government is considering subsidies for the plastic industry to maintain price stability while strengthening raw material supply amid global market volatility.“We are trying to find a solution for plastic price stability, because in principle plastic prices are highly dependent on naphtha, which affects production costs,” she said at Airlangga University here on Tuesday.She explained that the subsidy option is currently being discussed with the Coordinating Minister for Economic Affairs as a measure to curb rising plastic prices in the market.According to her, the policy is expected to stabilize prices while ensuring the sustainability of the national plastics industry.In addition, the government is also preparing a long-term strategy to explore alternative sources of naphtha that are less affected by global geopolitical conditions. The effort aims to strengthen domestic supply resilience and reduce vulnerability to international price fluctuations.Separately, the deputy minister also emphasized the importance of strengthening entrepreneurship through collaboration with universities and business associations.She noted that micro, small, and medium enterprises (MSMEs) contribute around 60 percent to Indonesia’s gross domestic product (GDP), highlighting their significant economic role.Through the “Campus Preneur” program, the Ministry of Trade aims to improve entrepreneurship literacy while expanding market access, both domestically and internationally.“For overseas markets, we have support facilities through trade attachés and Indonesian Trade Promotion Centers to help promote products,” she said.She added that synergy between the government, associations, and universities is key to improving human resource quality and driving national economic growth.