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View all search resultsChina imports crimp local plastic industry, business group warns
Industry Minister Muhammad Sarmuji said the government was examining the factors behind the slowdown and exploring possible solutions.
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A worker shows shredded plastic bottle to be recycled at the Bali PET Recycle facility in Denpasar, Bali on Aug. 22, 2025. (Antara/Fikri Yusuf)
T
he Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas) says domestic factories have been unable to operate optimally in recent months, with average capacity utilization reaching only 60 to 70 percent, as cheaper imported products, particularly from China, intensify competition and weigh on local manufacturers.
"At present, our capacity is low. This means our factories cannot operate at full capacity," Inaplas chairman Suhat Miyarso said after a meeting with the Industry Minister on Thursday as quoted by Kompas.
He attributed the situation partly to imported products being sold at lower prices than domestically manufactured goods, calling on the government to introduce measures to curb imports and provide greater protection for local producers.
"If imports can be reduced, I believe we can return to operating at 100 percent capacity," he said, adding that its members are seeking to raise domestic manufacturers' capacity utilization to 80 to 90 percent, allowing local producers to meet more of the country's demand for plastic materials.
Industry Minister Muhammad Sarmuji acknowledged that capacity utilization across the manufacturing sector remained below optimal levels and said the government was examining the factors behind the slowdown and possible solutions.
"We will look for solutions, identify the factors behind the problem and determine which parties we need to coordinate with to address it," he said at the same occasion.
The ministry will also assess the challenges facing the domestic plastics industry and identify issues requiring coordination with other government institutions.
