Indonesia: Latest guidelines on plastic bags usage could affect PE business

After the Indonesian government launched a nationwide campaign to reduce the use of plastic bags in an effort to combat waste management issues and lack of landfills; players are expecting a significant impact on shopping bags manufacturers if the campaign is officially legislated.

A converter commented, “We are not supplying to supermarkets or marts, but we are concern about a possible spillover effect as this type of regulation might provoke a price war among large shopping bags makers. Recycle might be a good opportunity in the near term.”

Meanwhile, sellers offering HDPE film grade have also expressed their concern about prospect business after the government guidelines are implemented. A trader said, “We think the impact will not be something we can ignore considering a vast number of supermarkets and minimarts in Jakarta area. Recycle business might also be affected due to increased in costs. We hope that expansion in other areas will compensate for the business from shopping bags sector.”

A major local producer is having a more cautious view and commented, “We are monitoring the possible impact on the local PE business as the government guidelines are only implemented among modern supermarkets and minimarkets in 23 cities. It is difficult to determine the effect at the moment.”

In another news, local producer maintain their PE offer stable compared to last week while international suppliers are attempting to increase their offers claiming limited supply.  

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