Indonesia Explores New Naphtha Sources Amid Middle East Supply Concerns

Indonesia is actively looking for alternative naphtha suppliers beyond the Middle East as rising shipping risks in the region raise concerns over potential supply disruptions, according to local reports. Trade Minister Budi Santoso stated that the government is evaluating sourcing options from regions such as India, Africa, and the Americas to reduce its heavy reliance on Middle Eastern imports.

Naphtha remains a critical raw material for Indonesia’s manufacturing sector, particularly in the production of plastics, synthetic rubber, and various industrial solvents. Ensuring a stable and uninterrupted supply has therefore become a key priority for the government.

However, the transition to new supply sources is expected to take time, as establishing fresh trade partnerships and adjusting logistics networks cannot happen overnight.

To support this shift, authorities are coordinating with industry stakeholders and international trade partners to safeguard domestic production. This strategy aligns with a broader regional trend, as other Asian nations are also reassessing feedstock security. Notably, South Korea has already taken measures to secure local availability by halting its naphtha exports.

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