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Indonesia seeks alternative naphtha sources amid Mideast supply risks

Jakarta (ANTARA) – The Indonesian government is moving to secure alternative sources of naphtha, a key feedstock for plastics, as shipping uncertainties threaten imports from the Middle East, Trade Minister Budi Santoso said Wednesday in Jakarta. “It should be underlined that we are importing naphtha from the Middle East, and if supply is hindered, what should we do? We have opted for identifying alternative sources from other countries,” Santoso told reporters after a press conference at the Presidential Staff Office. He stressed the importance of ensuring steady supplies of naphtha, a hydrocarbon derived from crude oil and widely used in producing plastic resin, rubber, and solvents. The government is coordinating with potential partners in India, Africa, and the Americas to diversify imports. “Understand that this process will take time, given the sudden necessity to shift from the Middle East to countries in other regions. We hope the process will proceed smoothly, allowing prices to return to the normal level,” Santoso remarked. The Trade Ministry has also opened communications with industrial associations and professionals, while maintaining close coordination with Indonesian representatives abroad. Regional partners such as Singapore, China, South Korea, Thailand, and Taiwan are also affected by the supply disruption. “We will continue making efforts to secure feedstock to safeguard domestic production activities and ensure a sufficient supply of plastic,” Santoso concluded.South Korea, meanwhile, has announced it will halt naphtha exports starting March 27 to protect domestic stocks amid global supply risks.