JAKARTA: The Industry Ministry is pushing for packaging diversification and the development of alternative materials to strengthen the competitiveness of domestic manufacturers, particularly in the food and beverage (F&B) sector, as global dynamics continue to drive up plastic prices.
“Industries in the F&B sector rely heavily on plastic for various packaging needs.
“We see the geopolitical situation in the Middle East as a catalyst to improve efficiency and accelerate innovation in more sustainable packaging alternatives,” said the ministry’s acting director general of agro industry, Putu Juli Ardika, on Tuesday.
In response, industry players have begun diversifying packaging materials, turning to paper, glass, metal and recycled plastics such as recycled polyethylene terephthalate, according to the ministry.
Putu noted that the shift reflects both cost considerations and a broader push toward sustainability.
Furthermore, the ministry sees strong potential in paper-based packaging, supported by Indonesia’s well-established pulp and paper industry.
“We are also focusing on developing aseptic packaging, which is widely used in the F&B industry to reduce reliance on cold chain systems,” Putu said.
He added that future innovations such as barrier paper, paper bottles, nano-cellulose coatings and active paper packaging would need to be strengthened through research and investment.
As of 2025, Indonesia’s pulp and paper industry comprised 113 companies, with a production capacity of 14.48 million tonnes of pulp and 25.37 million tonnes of paper annually.
The sector recorded exports valued at US$8.2bil and employs around 1.48 million workers, underscoring its strategic role in supporting packaging transformation.
Glass packaging is also being reconsidered as an alternative, although its domestic usage remains relatively low at around 2% to 3%, and the ministry aims to increase this share to between 5% and 6% to help stimulate the national glass industry.
Beyond conventional materials, the government is encouraging the development of bioplastics derived from natural resources such as cassava and seaweed.
As one of the world’s leading producers of both commodities, the ministry is optimistic that Indonesia is well-positioned to expand in this segment.
“Several domestic players have started producing environmentally friendly packaging based on cassava starch and seaweed.
“National Industrial Information System data show that cassava-based bioplastics have a production capacity of around 8,000 tonnes per year, while seaweed-based bioplastics remain much smaller at 28 tonnes annually,” Putu added.
Indonesian Food and Beverage Producers Association chairman Adhi Lukman said industry players continued to face immediate cost pressures from surging plastic prices of 30% to 100%, depending on the type and use of plastic, eroding profit margins and weighing on business performance.
“Some beverage producers that previously switched from glass to plastic are now considering returning to glass,” he said as quoted by Kumparan last week.
Alkindo Naratama president director Herwanto Sutanto said demand for plastic-substitute packaging, particularly paper-based products, has been rising, noting that sales of the company’s Aldo paper packaging have increased by around 20% to 30% since the start of the year, as reported by Kontan. — The Jakarta Post/ANN
