The surge in shares of conglomerate PT Barito Pacific compares with a 0.6 percent gain for the benchmark Jakarta Composite Index. A growing middle class and urbanization have been driving the demand for plastic products in Indonesia. The UN Environment Programme estimates about 300 million tonnes of such waste is produced annually and has initiatives to reduce single-use plastics, introducing levies or banning certain products outright. That is adding to confidence that demand for plastics would drive consumption of 7.2 million tonnes of raw materials annually, according to official data. “Petrochemical demand has a high correlation with GDP or consumption growth,” Lee Young Jun at PT Mirae Asset Sekuritas said.
