Reporter: Chelsea Anastasia | Editor: Tri Sulistiowati

KONTAN.CO.ID – Jakarta. Amid a shortage of plastic affecting packaging-dependent industries, a shift toward paper packaging is beginning to gain momentum.

This trend is being felt by brown paper packaging producer PT Alkindo Naratama Tbk (ALDO). The company’s President Director, Herwanto Sutanto, stated that demand for plastic-substitute packaging products such as paper has increased, particularly for food packaging.

“Plastic is not only experiencing price increases, but its availability has also become an issue. On the other hand, demand for paper is expected to continue moving in a positive direction,” said Sutanto during a meeting with Kontan in Jakarta on Monday (April 21, 2026).

Even before the Middle East conflict, ALDO had introduced brown paper as an effort to reduce the use of polystyrene or styrofoam packaging, which is typically sold at low prices. Sales of brown paper have continued to grow.

“However, with the current plastic shortage, demand has accelerated,” he added.

As a result, Sutanto noted that ALDO’s paper packaging sales have increased by around 20% to 30% since the beginning of the year. He also projected that if the conflict continues, demand for paper could rise even more significantly over the next three to four months. In parallel, not only domestic demand but also export demand has increased.

Similarly, PT Payung Rejeki Indonesia, a paper packaging manufacturer under the GRADE brand, has also experienced increased demand, although not across all segments.

The company’s Marketing Manager, Adrian Nada, explained that the surge in demand has been most noticeable in the micro, small, and medium enterprises (MSMEs) segment, particularly among fried snack vendors and food and beverage businesses that are now increasingly switching to paper packaging.

“For MSMEs, even a slight increase in cost of goods sold (COGS) can significantly impact their sales,” Adrian said in a separate interview with Kontan on Sunday (April 19, 2026).

Meanwhile, he observed that in the mid-tier segment such as hotels, restaurants, and cafés (HoReCa), there has not been a significant increase in demand. According to Adrian, this segment had already been educated to use paper products even before plastic prices increased.

As part of its strategy, Adrian stated that the company will continue to intensify campaigns promoting the use of paper packaging, particularly through digital marketing.

For reference, Payung Rejeki Indonesia provides a range of paper packaging products, including cake liners, doilies, paper bags, paper bases, wraps, tableware, and headwear.