Banyumas Regency Government Suggests SMEs Use Plastic Alternatives

Purwokerto (ANTARA) - The Banyumas Regency Government in Central Java has suggested that micro, small, and medium enterprise (MSME) actors seek alternatives to plastic amid the current shortage of raw materials.

Head of the Banyumas Regency Trade, Cooperatives, Small and Medium Enterprises Office (DPKUKM) Gatot Eko Purwadi in Purwokerto, Banyumas, on Friday, stated that the plastic shortage has begun to be complained about by traders due to rising prices and limited availability in the market.

“Complaints from traders are indeed there; they say that plastic is now expensive and scarce,” he said.

He stated that this condition is pushing business actors to continue production by seeking other packaging solutions, although not all types of products can easily switch from plastic.

According to him, business actors who still have plastic stock can currently run their businesses as usual.

However, for those who have run out of stock, he said, they are starting to experience difficulties in packaging the products they produce.

“Those who still have stock are still operating, but those who don’t are now confused looking for alternatives,” he said.

He acknowledged that replacing plastic packaging is not easy, especially for wet food products that require practical and airtight packaging.

“Wet food is difficult to replace with anything other than plastic. Using glass is expensive, while other alternatives like aluminium foil still contain plastic,” he explained.

His side has encouraged MSME actors to try non-plastic packaging innovations through training provided, but implementation in the field still faces various obstacles, especially for certain types of products.

Furthermore, he said that the shortage of plastic raw materials is a national issue because it still depends on imports.

According to him, the central government through the Ministry of Trade is currently trying to find alternative raw material sources besides from the Middle East region.

“This is a national issue; plastic raw materials are imported. We are waiting for policies from the centre,” said Gatot.

In a separate opportunity, Chairman of the Banyumas Regency Micro, Small, and Medium Enterprises Association (Aspikmas) Pujianto said that a number of MSME actors are complaining about the surge in plastic prices reaching 80 per cent, which directly impacts business activities, especially in the food sector.

According to him, this condition forces MSME actors to face two difficult choices: raising product selling prices to consumers or reducing profit margins.

In this regard, he said, if business actors choose to raise selling prices, there is a risk that the market becomes sensitive, potentially reducing purchasing power and sales volume.

“If they raise the selling price to the end user, if the market is sensitive, they could be displaced or reduce purchasing potential,” he emphasised.

Meanwhile, if they choose to reduce margins, he said, business actors must be prepared for reduced profits, even from the previous around 30 per cent to 15-20 per cent.

“Everything must be calculated carefully; don’t miscalculate the cost price and selling price, ending up in a loss,” he said.

He stated that for food MSMEs, the use of plastic as the main packaging is difficult to substitute with other materials.

According to him, this condition is different from the retail sector, which can replace plastic bags with alternative bags, because plastic packaging for food products is still a primary need.

“For food, it is almost impossible to replace, because the primary packaging indeed requires plastic,” he said.

He hopes that the plastic price increase is temporary so that MSME actors can still cope with it by adjusting margins without having to raise selling prices.

In addition, his side also hopes that the government can introduce policies that can respond to this condition so as not to further burden small business actors.

“The hope is for special policies from the government that can help address this situation,” said Pujianto.