00:01Plastic is becoming scarce, or more precisely, polyethylene.
00:05The key raw material used to make plastics is in short supply across Southeast Asia.
00:10Here in West Jakarta, one of the last batches is being fed into a machine that produces plastic bottles.
00:17Polyethylene is made mostly from crude oil.
00:20And as the war in the Gulf has disrupted supplies, prices have been soaring worldwide.
00:27We're seeing a sharp drop in demand.
00:30Orders that used to be around 200,000 to 300,000 pieces are now down by more than 40%.
00:36And even when demand is there, we often can't fulfill it because we simply don't have the raw materials.
00:45Only three of the factory's 11 machines are still running.
00:49The situation is now worse than what it was during the COVID-19 pandemic.
00:53This family-run business has had to cut its workforce by half to just seven employees since the Iran war
01:00started.
01:01And the impact goes far beyond this factory.
01:04From rice to fresh fruit, almost all food distribution depends on plastic packaging.
01:10As costs rise, businesses are passing them on to consumers.
01:14But the crisis also comes with an unexpected shift.
01:18In much of Southeast Asia, plastic is often burned or ends up in rivers and the ocean because of poor
01:24waste management.
01:26Environmental groups have pushed for alternatives for decades.
01:30These alternatives are in the limelight.
01:32The pressure on plastic-producing companies is no longer just environmental, it's economic.
01:38And that's opening up new opportunities for companies producing biodegradable alternatives,
01:43like these plastic bags or straws.
01:46This company in Thailand produces a substitute made from tapioca, which is a starch released from the cassava plant.
01:54All these products here are biodegradable.
01:57Right now, the portion of bioplastic in the world is less than 1%.
02:02For years, the company struggled to compete on price.
02:06Now, the surge in plastic costs is turning things around.
02:09I think ultimately, whether there's a shock or not, the world still needs to move towards sustainability.
02:15Whether it be because of climate change, carbon footprint, the shock in the supply chain,
02:20we all need alternatives to what we're using now.
02:23Yes, plastic is big.
02:24And yes, you know, the price of plastic goes up now, but it will come down.
02:28Now, whether it comes down to the same level or slightly higher or even lower, no one knows.
02:33But ultimately, longer term, the world still needs sustainable packaging material.
02:38Back in Indonesia, the plastic factory owner is also shifting to sustainable policies.
02:44He has started recycling defective plastic bottles into granules that can be mixed with polyethylene.
02:50The quality may be lower, but it keeps the production going and costs down.
02:57Our biggest concern is that customers who have long relied on plastic may start shifting to alternatives like glass or
03:05other materials.
03:06That's a real risk for us.
03:12For Koman, the Indonesian government's directive to cut import duties on plastic raw materials is welcome.
03:19But he says this will only slow the rising prices down.
03:23Even if the Strait of Hormuz reopens tomorrow, it could take months for the supply chain for plastic to recover.
03:31To the point where they barriers to keep transit, it could take months for the price of a small gas
03:34pump over the surface.
03:34As a result of the demand, gas is also a great deal.
03:35To the point where you can be baptized, gas is up to buy a bigger picture and you could be
03:35closer to the site.
03:35To the point where you can start a little by using storage of my bag.
03:35But I'm excited to be able to look for you, but it's more common to my life before it does
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