Indonesia’s plastics consumption growth slows in Q1: INAplas
Budi Susanto Sadiman, Vice President of INAplas, stated that naphtha and propylene prices fell significantly from a year earlier following weaker crude oil prices in global market. He reportedly commented, “Due to sluggish demand, producers cannot take advantage of lower feedstock costs. Indonesia’s plastics consumption growth slowed to 4% in the first quarter of 2015 from a growth rate of 7% in the same period of 2014.”
Sadiman attributed slower plastics consumption growth in Q1 to the fact that purchasing power has weakened due to higher electricity tariffs and fuel prices in the country. However, he believes that consumption growth may start to improve in the second quarter of 2015 when the government starts up some of its new projects. Plus, changes in the allocation of governmental subsidies worth around 600 trillion rupiah ($45 million) for the infrastructure sector are expected to support the country’s plastics consumption growth as well.
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